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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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French Ambassador pledges support for relief efforts

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A meeting between the Secretary to the President, Dr. Nandika Sanath Kumanayake and the French Ambassador to Sri Lanka,  Rémi Lambert, was held on Tuesday (09) afternoon  at the Presidential Secretariat.

During the discussion, the French Ambassador assured the Secretary to the President that the French Development Agency would extend its support to the Government’s programme for providing relief to those affected by Cyclone Ditwah and for rebuilding Sri Lanka. He further stated that steps are being taken to dispatch a team of experts to the country in the near future.

The Deputy Head of Mission at the French Embassy, was also present on this occasion.

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India extends multi-front support to Sri Lanka’s cyclone relief efforts

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India has strengthened its humanitarian support to Sri Lanka in the aftermath of Cyclone Ditwah, providing critical air assets, emergency supplies, engineering equipment and medical aid to bolster national rescue and recovery operations.

India dispatched an additional MI-17 helicopter to assist the Sri Lanka Air Force (SLAF) in ongoing air rescue missions on Tuesday (09). Two MI-17 V5 helicopters of the Indian Air Force had been operating in Sri Lanka from 29 November, conducting around 90 sorties, rescuing approximately 270 survivors, airlifting about 50 tonnes of relief material to inaccessible areas and relief camps and deploying 57 Sri Lankan troops to cut-off locations.

Having completed their flying hours, the two helicopters returned to India on Sunday (08) for mandatory maintenance and a fresh MI-17 aircraft arrived at Katunayake Airport to continue operations alongside the SLAF.

The aviation support comes alongside major maritime assistance. The Indian naval vessel INS Gharial arrived at the Port of Trincomalee on Sunday (08) carrying a 700-tonne humanitarian shipment, marking India’s fifth naval relief consignment to Sri Lanka, apart from 10 aircrafts and 5 helicopters, which have contributed towards rescues and relief operations, since the cyclone.

The shipment included essential food supplies such as pulses, sugar and milk powder, as well as bed sheets, towels, sarees, dhotis and tarpaulins for families displaced by flooding and landslides. The emergency aid is being directed to the hardest-hit districts through local relief agencies.

In a further show of engineering support, India has also handed over a 63-ton Bailey bridge and a consignment of essential medicines to Sri Lankan authorities to restore connectivity and meet urgent medical needs in affected communities.

The cargo was received by General Chaminda Wijerathne of the Sri Lanka Army Headquarters, Sunil Jayaweera, former Director Preparedness of the Disaster Management Centre (DMC), now volunteering in the response and Shan Pathirana, Deputy Director of the DMC Awareness Division.

The handover was facilitated by the Indian High Commission in Colombo.

These coordinated air, sea and engineering initiatives underscore India’s continued commitment to supporting Sri Lanka during its national emergency response and long-term recovery. The assistance forms part of India’s broader partnership to restore essential services, reconnect isolated communities and provide relief to thousands affected by Cyclone Ditwah.

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Relief Cargo from the UAE arrives in Sri Lanka

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In a significant gesture of solidarity and support, a relief cargo from the United Arab Emirates has been officially received in Sri Lanka.

The cargo was accepted by key representatives from the Middle East Division of the Ministry of Foreign Affairs, including Ms. Ishara De Silva and Ms. Sajeeda Rasheed, both serving as Assistant Directors.

Joining them were  Sunil Jayaweera, a former Director of Preparedness at the Disaster Management Center (DMC), who has returned to volunteer after retirement and . Shan Pathirana, Deputy Director of the Awareness Division at DMC.

The cargo was presented by the Deputy Head of Mission, representing the UAE, highlighting the strong ties and commitment to humanitarian aid between the two nations.

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