New Delhi, May 8 (IANS) India will provide financial aid to develop the biggest harbour in Sri Lanka's north to facilitate transportation of goods from nearby Indian ports, according to a Sri Lankan official here.

The Kankasanthurai harbour in Jaffna peninsula will be developed in two phases. The harbour is one of 10 sea and air entry points to the country.

President Mahinda Rajapaksa, who holds the finance portfolio, presented to the cabinet the proposal to develop the harbour.

Sri Lanka High Commission's Minister-Counsellor Sugeeswara Senadhira said the cabinet gave the green signal to the project last week.

The project will involve repairs to the existing breakwater, jetty and deepening of the harbour. A new breakwater will also be constructed.

"A Memorandum of Understanding with the Indian government is to be signed shortly," Senadhira told IANS.

The harbour's development is expected to enable the economic and social development of war-torn northern Sri Lanka. The harbour will facilitate the transportation of goods from nearby Indian ports.

After the Tamil Tigers were crushed in May 2009, Sri Lanka started major reconstruction programmes in its north and east. India is funding some of the projects.