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

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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Million Lankan women workers will lose their jobs if Trump’s 44 % tariff goes into effect

As many as a million Lankan women workers in key export sectors will lose their jobs and income if the 44 percent tariffs imposed by US President Donald Trump come into force at the end of the 90-day pause, Asia News has reported.
Sri Lanka’s main export industries, such as apparel, tea, gems, rubber and cinnamon, that employ mostly women, will be the most affected by the new tariffs since the US market is one of their most lucrative.
Apparel workers reproach the government for its “lethargic attitude” and failure to consider the concerns of workers and unions, not least because their representatives were not asked to participate in the discussions on tariffs.
The apparel industry accounts for about 40 percent of the country’s total exports, and is crucial for its economy. It also employs mainly women from low-income backgrounds in rural areas, for whom these jobs represent a crucial pathway out of poverty.
Since most apparel workers are also breadwinners, their wages help extended family networks in economically disadvantaged regions.
“The Women’s Centre collaborated with 25 other women’s organisations to carry out our campaign against the US tariffs hindering women workers,” said its Executive Director, Padmini Weerasuriya.
If the tariffs go into effect, “Their take-home pay will decrease significantly,” she added. “As orders dip and approximately six million dependents will also be severely impacted.”
“These women need job security as factories are already discussing about possible layoffs of workers, since demand is likely to drop.”
Compared to India and Bangladesh, she warns, Sri Lankan women face greater competition since “the tariffs imposed on Sri Lanka are higher”. That is why several manufacturers are already moving their operations to Vietnam, Bangladesh and Africa.
If plants shut down, more than 350,000 women working will be impacted. AsiaNews met three of them, 33-year-old Subadra Aponsu, 31-year-old Hemamamli Akaravita and 30-year-old Sandamini Tissera who spoke about their difficulties.
“We are the breadwinners of our families as our parents are elderly and sick. Our siblings are married and they are unable to provide for our parents. During the past several years, we have been working hard and providing for our families. If we lose our jobs, we have no option but to mortgage our homes,” they explained.
“During the economic crisis, we had to sell our paddy fields. Currently, our employers are planning to leave the country. We may lose our jobs shortly. We are unable to find employment elsewhere as almost every apparel manufacturer is planning to sell their business. In our boarding house, several women have already lost their jobs.”
According to economic analysts Sampath Amarasinghe and Niroshini Caldera, “due to the new tariffs, there will be a significant decline in export volumes with a severe erosion of Sri Lankan goods’ competitiveness in US markets.” All this, they warn, could result in “many Sri Lankan products ending up out of reach for US consumers and businesses.”
The greatest risk concerns “price- and cost-sensitive categories like garments, where profit margins are already low and competition from other countries is intense.”
The new tariff will see exports to the United States drop by 20 percent, with an annual loss of about US$ 300 million in foreign currency earnings.
As Sri Lanka’s total exports of goods in 2024 reached US$ 13 billion, the experts conclude, this represents “a major blow to the country’s balance of trade” and “economic growth prospects”.
Meanwhile, several women’s groups started a petition last week in the Katunayake Free Trade Zone (the first and largest of the country’s eight FTZs). – (AsiaNews)
News
Sri Lanka reiterates commitment to repeal PTA in talks with EU

Sri Lanka has again declared its commitment to repeal the Prevention of Terrorism Act (PTA) during the recently concluded talks with the European Union.
At the eighth meeting of the Working Group on Governance, Rule of Law and Human Rights under the EU-Sri Lanka Joint Commission, held in Colombo, Sri Lankan representatives “confirmed the commitment to repeal the Prevention of Terrorism Act (PTA), and briefed the Working Group on the timeline to replace it with new counter-terrorism legislation in compliance with international norms and standards.”
The PTA has long drawn criticism from civil society, rights organisations, and international observers. The law has enabled arbitrary detention and torture for decades, particularly against Tamils. Despite repeated pledges by successive governments, no comprehensive repeal has yet materialised.
Though the National People’s Power (NPP)-backed government has stated its commitment to repeal the PTA during election campaigns last year, once in power it has not yet taken legislative action to do so.
The following is the text of the joint statement issued by the government and the EU: The eighth meeting of the Working Group on Governance, Rule of Law and Human Rights under the EU-Sri Lanka Joint Commission was held in Colombo on 5 May.
The Working Group discussed a range of matters of mutual interest, including efforts to combatting corruption, upholding human rights including labour rights; rights of persons belonging to minorities; women’s rights; child rights; a conducive space for civil society; strengthening electoral processes; and preventing discrimination based on gender and sexual orientation.
During the discussions, the European Union congratulated Sri Lanka on the well-organised and peaceful Presidential and Parliamentary elections last year and Sri Lanka appreciated the European Union Election Observation Mission at the Presidential elections.
The European Union also congratulated Sri Lanka on the stabilisation of the economy, continued efforts towards recovery and important initiatives such as the Government Action Plan for the implementation of governance reforms based on the IMF recommendations. Sri Lanka briefed the European Union on the adoption of the National Action Plan to Combat Corruption as well as steps taken to strengthen the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). The EU and Sri Lanka agreed on the importance of governance and judicial processes to strengthen the rule of law. The Sri Lanka side briefed the EU on the steps being taken by the Government since its election to strengthen the democratic process, governance, rule of law and the legal framework for protecting and promoting human rights. They agreed on the important role of civil society organisations, particularly in fostering inclusive and consultative legislative processes within democratic societies.
The Working Group reiterated its shared commitment to promote and protect human rights and to collaborate, as applicable, on the effective implementation of international human rights instruments. Sri Lanka confirmed the commitment to repeal the Prevention of Terrorism Act (PTA), and briefed the Working Group on the timeline to replace it with new counter-terrorism legislation in compliance with international norms and standards. The European Union recalled the need to bring relevant legislation in line with international Human Rights and ILO conventions to ensure continued access to the European market through the GSP+ trade preferences.
The European Union welcomed the commitment of the Government to end discrimination and build national unity, as well as the pledge to strengthen the truth and reconciliation framework in Sri Lanka, through an inclusive and participative process of all communities.
The EU and Sri Lanka reiterated their commitment to continue to work in the multilateral UN framework and continue their engagement with the Office of the High Commissioner for Human Rights and the Human Rights Council.
The European Union and Sri Lanka also reaffirmed their shared commitment to continuing to support a multilateral, rules-based international order grounded in international law, with the United Nations at its core.
The conclusions and recommendations of the Working Group will be reported to the EU-Sri Lanka Joint Commission to be held in Colombo during the latter half of the year.
The Delegation of Sri Lanka was led by Sugeeshwara Gunaratna, Director-General/ Europe and North America Division of the Ministry of Foreign Affairs, Foreign Employment and Tourism. The Delegation of the European Union was led by Charles Whiteley, Head of the South Asia Division of the European External Action Service.
News
Tamil nationalism triumphs over ‘Anura Wave’ – Sumanthiran

Ilankai Tamil Arasu Katchi (ITAK) Secretary and President’s Counsel M.A. Sumanthiran has said the results of the just concluded local government elections have dispelled the myth of an “Anura wave” and reaffirmed the enduring strength of Tamil nationalism in the North-East.
Speaking at a press briefing held recently at the Jaffna Press Club, Sumanthiran extended his gratitude to the voters across the North and East, who supported ITAK, allowing it to emerge victorious in several of the contested local councils.
Despite intense propaganda about a sweeping wave of change, he said, the results showed a clear commitment from the Tamil people to their nationalist aspirations.
ITAK contested in 58 local councils across the North-East and secured administrative control in 40 of them—a result Sumanthiran described as both significant and decisive. The outcome, he asserted, underscored the community’s continued faith in Tamil nationalist politics, even amid strong attempts by southern parties, such as the ruling National People’s Power (NPP), to make inroads into Tamil-majority areas.
The so-called “Anura wave”—a reference to Sri Lankan President Anura Kumara Dissanayake and the NPP’s campaign strategy—had been heavily promoted in recent months, particularly in the Tamil North and East, where NPP representatives had attempted to position themselves as allies of the Tamil people. However, the local election results reflect that such messaging failed to gain meaningful traction.
Sumanthiran acknowledged that while ITAK secured a majority of council presidencies, collaboration with other Tamil political actors would still be necessary in certain areas where no single party had achieved a clear majority.
In the current political climate, I believe our allied Tamil parties will understand the mandate of the people and offer their support accordingly, he said.
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