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Advocata Institute welcomes SL’s decision to resume stalled project to develop East Container Terminal

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Open and Competitive Bidding must be the way forward

COLOMBO, Sri Lanka— 

As reported in numerous media sources, a leading Indian consortium is the front runner to develop the stalled East Container Terminal (ECT) in the Colombo Port.

An agreement was reached during the tenure of the former government to develop the ECT in collaboration with the governments of India and Japan. However, the progress of the terminal development was stalled due to various reasons. 

The Advocata Institute welcomes the decision of the administration to resume the stalled project. The significance of the Colombo Port is driven by its large volumes of transhipment to India, which now accounts for about 70% of the total quantity of shipments. It is beneficial that both countries continue to strengthen this relationship through trade and economic partnerships. 

However, we would like to provide input on two main policy areas surrounding this project, in order for policymakers and the public to evaluate the efficacy of the upcoming arrangement. 

Accountability through Competitive Bidding 

The key concern of the Government when entering any kind of public-private partnership such as the container terminal development process should be to ensure that it will produce value for money. The commercial partner selected should be the most capable of producing this outcome. An open tender process would allow for a more efficient allocation of resources by using competitive pricing as a tool to reflect real market sentiments and allowing better utilization of resources.  

 

Tax concessions 

The ECT provides an unique competitive advantage for the operator. The risk in this investment is relatively low, given that the port is already established. The Southport (deepwater port) is well known and has been in existence for 6-7 years. The port is also strategically located with only a 4-hour deviation from the major east-west shipping route. Additionally, its competitor, the CICT terminal is running close to capacity.

Finally, there is a very limited employment multiplier effect that this project can create. The private returns are significantly higher than the cost of capital factoring in-country and project risk.  Taken together and based on the publicly available information, the case for tax holidays on this project is weak.

Further consideration must also be placed on the precarious fiscal situation that the country is presently in and the need to mobilise more tax revenue.

The Advocata Institute calls upon the government to strengthen oversight and accountability through an open tender process. We believe that such a policy direction would be more conducive to reaching the administration’s vision of a more productive and prosperous Sri Lanka. (Advocata Press Release)



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Lankan aircrew fly daring UN Medevac in hostile conditions in Africa

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Lankan Air Force personnel rescuing a UN personnel at Zemio in Central African Republic

The Sri Lanka Aviation Unit operating under the United Nations (UN) mandate in the Central African Republic (CAR) has successfully carried out a critical Casualty Evacuation (CASEVAC) mission, under extremely hostile and volatile conditions.

The mission had been launched in response to an urgent request to evacuate two United Nations personnel who had sustained combat-related injuries in the Zemio area, the Sri Lanka Air Force (SLAF) said.

Accordingly, the evacuation has been conducted using a Mi-17 helicopter (UNO 325P).

The aircraft was captained by Wing Commander Nelson De Silva, with Flight

Lieutenant Arunoda Ekanayake serving as co-pilot.

The aircrew comprised Squadron Leader Sandeepa Wijayathunga, Sergeant WCN Senevirathne, and Corporal DVPM Rodrigo. The Aeromedical Evacuation Team included Group Captain Sujith Perera, Flight Sergeant KW Sumedha, and Flight Sergeant RDH Karunadasa, who provided critical in-flight medical care to the casualties, the SLAF stated.

The extraction site was located approximately 20 kilometres northeast of the Zemio Permanent Operating Base (POB) and posed significant operational challenges.

They included extremely dusty landing conditions, an unstable and rapidly evolving tactical environment, and the requirement for a precision landing under constant threat, the SLAF said.

Despite these constraints, the aircrew demonstrated remarkable courage, sound judgement, and outstanding airmanship throughout the operation.

A comprehensive threat assessment conducted by the aircraft commander, taking into account the critical condition of the casualties, reflected exceptional adaptability and operational decision-making, the statement added.

According to the SLAF, the total flight duration of the mission was one hour and 45 minutes. The injured personnel were safely evacuated from the hostile location and successfully transported to Bangui for advanced medical treatment.

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Lanka to observe National Safety Day today

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Sri Lanka will mark National Safety Day today (26) with countrywide religious observances, a national moment of silence and the main state commemoration at the Peraliya Tsunami Memorial in Galle, officials said yesterday.

The annual observance, declared in the aftermath of the 2004 Indian Ocean tsunami that claimed over 35,000 lives and left more than 5,000 people missing, is held each year to honour victims of the tsunami and other disasters, while reinforcing public awareness on disaster preparedness.

Disaster Management Centre (DMC) Director General Retired Major General Sudantha Ranasinghe said the 2025 programme would be conducted with due consideration to prevailing weather conditions caused by the Ditwah cyclone, with district-level multi-religious observances planned across the country.

“National Safety Day is a moment of remembrance and reflection. It also reminds us of the importance of preparedness, early warning and community resilience,” he said.

The main national commemoration will take place at the Peraliya Tsunami Memorial from 8.30 a.m. to 11.00 a.m., with the participation of government representatives, religious leaders, disaster survivors and families of victims.

Secretary to the Ministry of Defence Air Vice Marshal (Retd) Sampath Thuyacontha said a two-minute silence will be observed nationwide from 9.25 am to 9.27 am today, in memory of all those who lost their lives to the tsunami and other disasters.

“All institutions and members of the public are requested to observe this moment of silence as a mark of respect and national solidarity,” he said.

DMC Additional Director General Pradeep Kodippili urged the media to provide wide coverage to the main commemoration in Galle as well as district-level programmes organised through District Secretariats.

“Media support and public participation are essential to ensure that the lessons of past disasters remain alive and that a culture of safety is strengthened across the country,” Kodippili said.

National Safety Day has been observed annually on December 26 since 2005.

By Ifham Nizam ✍️

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Street vendors banned from Kandy City

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Mayor Chandrasiri Wijenayake

All forms of street vending within the Kandy Municipal Council area will be banned from January 1, Mayor Chandrasiri Wijenayake has said.The Kandy Mayor said the decision had been taken as part of efforts to preserve it as a clean and aesthetically pleasing city and to allow the public to move freely while enjoying its surroundings.

He said the ban would apply not only to streets in the city centre but across the entire municipal council area. The move, he added, follows long-standing public requests for a more systematic regulatory framework within the Kandy urban area and is aimed at ensuring public convenience and welfare.

Wijenayake stressed that the decision would be implemented without reversal.

The Kandy Municipal Council has already issued formal notices to pavement vendors directing them to cease operations. Street vendors had requested a three-month grace period to relocate, which will expire on December 31.

By S. K. Samaranayake ✍️

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