News

Chinese firm asks for over Rs 4,000 mn as compensation over delay in ECT construction

Published

10 months ago

2025/11/17

Sri Lanka Ports Authority (SLPA) officials appearing before Committee on Public Enterprises (COPE) - Pic courtesy Parliament

A one-and-a-half year delay in completing the East Container Terminal (ECT) of the Colombo Port has caused massive losses, with the Chinese contractor demanding a staggering Rs 4,227 mn in compensation.

According to a statement issued by M. Jayalath Perera, Director Legislative Services / Director Communication (Acting), Parliament of Sri Lanka, the Cabinet approved the contract, worth Rs. 40,272 mn, in November, 2021, and the relevant agreements signed in the following month.

The project, which was scheduled to be completed by the first week of January 2025, is now due for completion in July, 2026.

The issue transpired at a recent meeting of the Committee on Public Enterprises (COPE), chaired by Dr. Nishantha Samaraweera, to discuss the Auditor General’s Reports for the years 2022 and 2023 and the current performance of the Sri Lanka Ports Authority (SLPA).

However, the Parliament refrained from naming the contractor and mentioning specific reasons for the delay.

Pointing out that due to the 548-day delay the contractor has claimed Rs. 4,227 million as compensation, Dr. Samaraweera called for a comprehensive report, containing all relevant particulars, to be submitted to the Committee. The COPE examined the performance of SLPA on 10 September and 13 November.

COPE members Dayasiri Jayasekara, S.M. Marikkar, Sujeewa Senasinghe, MKM Aslam, (Dr.) Pathmanathan Sathiyalingam, (Dr.) S. Sri Bavanandarajah, Lieutenant Commander (Rtd.) Prageeth Madhuranga, Thilina Samarakoon, Samanmali Gunasingha, Sunil Rajapaksha, Chandima Hettiarachchi, and Dinesh Hemanta participated in the meeting held on 13 November.

State-run China Harbour Engineering Company secured the contract, in late 2021, from President Gotabaya Rajapaksa’s government, after continuous protests backed by port unions affiliated to the SLPP, the UNP and the JVP/NPP against a tripartite agreement involving India, Japan and Sri Lanka to develop the port.

Sources pointed out that President Gotabaya Rajapaksa’s government tried to go ahead with a “memorandum of cooperation” (MoC) signed with India and Japan to develop the ECT, located just next to the USD 500 million Chinese-run Colombo International Container Terminal (CICT). (SF)

All News Advertisement

News

“Rathuwewi Mihimadala” Book Launched with the Participation of the Prime Minister

Published

2 hours ago

2026/08/30

Priyan

The book “Rathuwewi Mihimadala”, written based on the life story of Vasudeva Nanayakkara, Leader of the Democratic Left Front, was launched on Friday [August 28] at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo, with the participation of Prime Minister Dr. Harini Amarasuriya.

Speaking to the media afterwards about Vasudeva Nanayakkara, Prime Minister Dr. Harini Amarasuriya stated:

“Vasudeva Nanayakkara is a prominent figure in Sri Lankan politics, particularly within the left-wing political movement. There were several influential figures within the left movement, and that left-wing influence also contributed to bringing the country to where it is today. Politically, there were areas where we agreed and areas where we did not. However, I have great respect for the contribution made by Vasudeva Nanayakkara to left-wing politics. When I entered Parliament in 2020, Vasudeva Nanayakkara was also in Parliament. We sat in the same row, and we spoke about many important as well as interesting moments in his political career. I believe some of these experiences have also been included in this book.”

The event was attended by members of the Maha Sangha, Minister of Justice Harshana Nanayakkara, former President Maithripala Sirisena, former Speakers Karu Jayasuriya and Chamal Rajapaksa, as well as party members, family members and friends.

[Prime Minister’s Media Division]

Latest News

Sun directly overhead Mannar, Periyamadu, Puliyankulam, Welioya and Pulmoddai about 12.11 noon today (30)

Published

12 hours ago

2026/08/30

Priyan

The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (30) are Mannar, Periyamadu, Puliyankulam, Welioya and
Pulmoddai about 12.11 noon.

News

Lanka tracks 11 US-sanctioned Iranian tankers off coast

Published

14 hours ago

2026/08/30

Thilina Walpola

(AFP) Sri Lanka’s maritime authorities were monitoring a fleet of 11 US-sanctioned Iranian oil tankers just off the island’s southern coast, the foreign minister said Wednesday.

The tankers were spotted close to the Galle harbour where an Iranian frigate, IRIS Dena, was sunk by a US submarine in March, killing 104 sailors. Sri Lanka’s navy rescued 32 Iranian sailors from that frigate.

Iranian vessels have been in limbo, unable to return to their home port because of a US blockade.

Sri Lanka’s Foreign minister Vijitha Herath said the tankers were in international waters where they had freedom of navigation.

“These ships are away from our territorial waters… we have no hold on them, nor have we facilitated them,” Herath told AFP.

The military deployed reconnaissance aircraft and patrol boats to monitor the vessels outside Sri Lanka’s 12-nautical-mile territorial waters, a military official told AFP on condition of anonymity.

“There is no indication of any ship-to-ship transfer of oil or illegal discharge of pollutants, so there is no basis for Sri Lankan authorities to take action against them,” the official said.

Many Iranian merchant vessels moved east towards the Strait of Malacca and Singapore due to US sanctions, while several remained near Sri Lankan waters, authorities said.

Sri Lankan officials said Washington had not formally notified Colombo about sanctioned Iranian-flagged vessels