COLOMBO, Feb. 25 (Xinhua) -- Sri Lankan Ports and Shipping Ministry on Monday said it has taken steps to modernize information technology at the island's Colombo port to transform it into a "smart port" with automated functions to improve efficiency.

In a statement, Ports, Shipping and Southern Development Minister Sagala Ratnayaka said the government had allocated Rs. 929 million rupees (about 5.18 million U.S. dollars) towards this project and he expects the process of IT upgrades to streamline terminal management and cargo systems to be completed within the next 12 to 18 months.

The initiative will include using satellite-based positioning systems which provide improved location accuracy to make the best use of container handling equipment within port terminals and increase productivity.

It will also include business intelligence tools, web portals and simulation tools, Ratnayaka said.

Transforming Colombo port into a smart port is a timely need, he added.