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Colombo Port ECT: Confusion over Investment

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By Eng. D. Godage

The Colombo Port East Container Terminal, ECT, is hot topic, being an important economic nerve centre essential to the country but getting involved as a pawn in geopolitics. Opinion by I. P. C. Mendis in The Island (27.01.2021) prompted to clarify some of the matters and expose true facts.

ECT will neither be sold nor leased; it will be developed through investment from an Indian party and others by giving out 49 per cent share to them while keeping 51 per cent share with the Ports Authority. This is the government stance. Public awareness exists on Build Operate Transfer (BOT) agreements in the port with two terminals operating under this method. Land and sea area are leased to the relevant party by a lease agreement for a specified period, 35 years in both, and the private party invests to develop the terminal. So investment is an essential part in those agreements. But presently announced terminology creates confusion.

The Colombo South Harbour would not have been a reality if not for the Asian Development Bank (ADB), which offered a major loan for infrastructure development when other major donor agencies declined to come forward. The ADB Country Lending programme had only $ 100 million in 2005 while the cost of the South Harbour project was estimated at $ 330 million. There were unfavorable loan covenants such as Jaya Container Terminal (JCT) privatization, and that became a hindrance.

In 2004, the government sought private sector funding for the breakwater works and SEMA (Strategic Enterprises Management Authority) advocated the same even after showing that there was no precedent as regards private sector investment in such port infrastructure globally. Different methodologies, like bond issues, the setting up of a Company as SPV (Special Purpose Vehicle) for commercial borrowing were talked about until May 2006 without success. Fresh negotiations thereafter with the ADB reached fruition and the critical covenants were either relaxed or diluted. The loan amount was increased to $ 300 million and the agreement thereon signed in April 2007.

Critical loan covenant was the selection of private investors for the first two new terminals chosen through open competitive bidding process followed by signing of concession agreements. Subsequent amendment to the Loan Agreement in June 2012 at the request of the Ports Authority changed ‘the first two terminals’ to mean ‘any two’. At no stage did the agreement include private participation in all three terminals.

Proposals were invited from prequalified private investors for the first terminal viz. the South Terminal from February 2007 even before signing of loan agreement to comply with loan covenant. In fact, invitation was made on two occasions as the first was cancelled in February 2008 when a total of five offers with two favourable ones were available. Compliance with the loan covenant was delayed by over a year and this led to a delay in the release of funds from ADB and commencement of construction.

The Memorandum of Cooperation signed with Japan and India in May 2019 proposed the development of the ECT under an Operations Company with 51 per cent shares retained by the Ports Authority. When the Minister submitted a Cabinet Memorandum naming one Indian investor, Adani, disregarding Japan, the government deviated from the agreement as well as the ADB loan covenant of open competitive bidding process. These deviations may be of different degree but the fact remains that they are digressions.

Another issue is that Hambantota Port and the Port City are totally different scenarios. The former is a white elephant in short even though the Chinese have acquired it. Two feasibility studies, one by SNC Lavalin of Canada and other by Ramboll of Denmark did not show viability of the project unless container operations started immediately. While both the Colombo South Harbour and the Hambantota Port projects commenced around the same time, the Hambantota project received priority. As regards the Port City, benefits may accrue after 10 years or more. On the other hand, since last October, the ECT has been operational with one berth built by the Ports Authority and is making profits.

The proposed formula for the ECT, in the referred Opinion, is a Joint Stock Co. As regards both SAGT and CICT, there are BOT (Build Operate Transfer) Agreements signed after being cleared by the highest legal authority of the country; they are between two parties, Ports Authority and the investor. They include a condition that Ports Authority hold a particular share, viz. 15 per cent. On the other hand, Joint Stock Company formation by the Ports Authority as the major shareholder seems a different process. The formation of such company is not permissible under the SLPA Act as found some time ago.

Further to the registration of an unlisted company and proposed structure, it is essential to divulge, inter alia, the total equity in order to estimate the Ports Authority share, Articles of Company to be acceptable to other private party, method of raising $ 500 million as building cost and liability on Ports Authority as lead partner.

Another subject that needs attention is the announcement by the Minister that West Terminal has to be commenced now. It has to be noted that ECT requires at least two more years to operationalize in complete form while only one berth of ECT is operational now by the Ports Authority. Another matter worth mentioning is that the Colombo Port Development Plan prepared and presented by the Ports Authority with the assistance of ADB in March 2019 states the capacity shortage starts from 2020, ECT operations start in 2019 and West Terminal commences operations in 2025. The ECT operations have been delayed and as such the WCT operation is not urgent with ample time available for planning.

What is urgently needed is a prompt decision on the ECT operations already behind schedule and the acceleration of the procurement process by the Ports Authority for remaining work and this is time-consuming.

Those in the maritime industry and others who wish for the success of Colombo Port highlighted the delay in operationalisation of ECT. Trade Unions are agitating, politicians are talking but no productive action has been taken. In the end, a prompt decision is essential as terminals cannot be built overnight but that task takes about two years. Otherwise, the Colombo Port will face congestion, ship diversions and bypassing and above all losing global reputation and position.



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Opinion

Ranwala crash: Govt. lays bare its true face

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The NPP government is apparently sinking into a pit dug by the one of its members, ‘Dr’ Asoka Ranwala; perhaps a golden pit (Ran Wala) staying true to his name! Some may accuse me of being unpatriotic by criticising a government facing the uphill task of rebuilding the country after an unprecedented catastrophe. Whilst respecting their sentiment, I cannot help but point out that it is the totally unwarranted actions of the government that is earning much warranted criticism, as well stated in the editorial “Smell of Power” (The Island, 15 December). Cartoonist Jeffrey, in his brilliance, has gone a step further by depicting Asoka Ranwala as a giant tsunami wave rushing to engulf the tiny NPP house in the shore, AKD is trying to protect. (The Island, 18 December).

The fact that Asoka Ranwala is very important to the JVP, for whatever reason, became evident when he was elected the Speaker of Parliament despite his lack of any parliamentary experience. When questions were raised about his doctorate in Parliament, Ranwala fiercely defended his position, ably supported by fellow MPs. When the Opposition kept on piling pressure, producing evidence to the contrary, Ranwala stepped aside, claiming that he had misplaced the certificate but would stage a comeback, once found. A year has passed and he is yet to procure a copy of the certificate, or even a confirmatory letter from the Japanese university!

The fact that AKD did not ask Ranwala to give up his parliamentary seat, a decision he may well be regretting now following recent events, shows that either AKD is not a strong leader who can be trusted to translate his words to action or that Ranwala is too important to be got rid of. In fact, AKD should have put his foot down, as it was revealed that Ranwala was a hypocrite, even if not a liar. Ranwala led the campaign to dismantle the private medical school set up by Dr Neville Fernando, which was earning foreign exchange for the country by recruiting foreign students, in addition to saving the outflow of funds for educating Sri Lankan medical graduates abroad. He headed the organisation of parents of state medical students, claiming that they would be adversely affected, and some of the photographs of the protests he led refer to him as Professor Ranwala! Whilst leading the battle against private medical education, Ranwala claims to have obtained his PhD from a private university in Japan. Is this not the height of hypocrisy?

The recent road traffic accident he was involved in would have been inconsequential had Ranwala been decent enough to leave his parliamentary seat or, at least, being humble enough to offer an apology for his exaggerated academic qualifications. After all, he is not the only person to have been caught in the act of embellishing a CV. As far as the road traffic accident is concerned, too, it may not be his entire responsibility. Considering the chaotic traffic, in and around Colombo, coupled with awful driving standards dictated by lack of patience and consideration, it is a surprise that more accidents do not happen in Sri Lanka. Following the accident, may be to exonerate from the first count, a campaign was launched by NPP supporters stating that a man should be judged on his achievements, not qualifications, further implying that he does not have the certificate because he got it in a different name!

What went wrong was not the accident, but the way it was handled. Onlookers claim that Ranwala was smelling of alcohol but there is no proof yet. He could have admitted it even if he had taken any alcohol, which many do and continue to drive in Sri Lanka. After all, the Secretary to the Ministry overseeing the Police was able to get the charge dropped after causing multiple accidents while driving under the influence of liquor! He, with another former police officer, sensing the way the wind was blowing formed a retired police collective to support the NPP and were adequately rewarded by being given top jobs, despite a cloud hanging over them of neglect of duty during the Easter Sunday attacks. This naïve political act brought the integrity of the police into question. The way the police behaved after Ranwala’s accident confirmed the fears in the minds of right-thinking Sri Lankans.

In the euphoria of the success of a party promising a new dawn, unfortunately, many political commentators kept silent but it is becoming pretty obvious that most are awaking to the reality of a false dawn. It could not have come at a worse time for the NPP: in spite of the initial failures to act on the warnings regarding the devastating effects of Ditwah, the government was making good progress in sorting problems out, when Ranwala met with an accident.

The excuses given by the police for not doing a breathalyser test, or blood alcohol levels, promptly, are simply pathetic. Half-life of alcohol is around 4-5 hours and unless Ranwala was dead drunk, it is extremely unlikely any significant amounts of alcohol would be detected in a blood sample taken after 24 hours. Maybe the knowledge of this that made government Spokesmen to claim boldly that proper action would be taken irrespective of the position held. Now that the Government Analyst has not found any alcohol in the blood, no action is needed! Instead, the government seems to have got the IGP to investigate the police. Would any police officers suffer for doing a favour to the government? That is the million-dollar question!

Unfortunately, all this woke up a sleeping giant; a problem that the government hoped would be solved by the passage of time. If the government is hoping that the dishonesty of one of its prominent members would be forgotten with the passage of time, it will be in for a rude shock. When questioned by journalists repeated, the Cabinet spokesman had to say action would be taken if the claim of the doctorate was false. However, he added that the party has not decided what that action would be! What about the promise to rid Parliament of crooks?

It is now clear that the NPP government is not any different from the predecessors and that Sri Lankan voters are forced to contend with yet another false dawn!

by Dr Upul Wijayawardhana ✍️

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Ceylon pot tea: redefining value, sustainability and future of global tea

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The international tea industry is experiencing one of the most difficult periods in its history. Producers worldwide are caught in a paradox: tea must be made “cheaper than water” to stay competitive, yet this very race to the bottom erodes profitability, weakens supply chains, and drives away the most talented professionals whose expertise is essential for innovation. At the heart of this crisis lies the structure of commodity tea pricing. Although the auction system has served the world for over a century, it has clear limitations. It rewards volume rather than innovation, penalises differentiation, and leaves little room for value-added product development.

Sri Lanka, one of the world’s finest tea origins, feels this pressure more intensely than most. The industry’s traditional reliance on auctions prevents it from accessing the full premium that its authentic climate, terroir, and craftsmanship deserve. The solution is not to dismantle auctions—because they maintain transparency and global trust—but to evolve beyond them. For tea to thrive again, Ceylon Tea must enter the product market, where brand value, wellness benefits, and consumer experience define price—not weight.

Sri Lanka’s Unique Comparative Advantage

Sri Lanka possesses both competitive and comparative advantage unmatched by any other tea-producing nation. One of the least-discussed scientific advantages is its low gravitational pull, enabling the tea plant to circulate nutrients differently and produce a uniquely delicate, flavour-rich leaf. This natural phenomenon, combined with diverse microclimates, gives Sri Lankan tea extraordinary antioxidant density, rich polyphenols, and a full sensory profile representative of the land and its people.

However, this advantage is undermined by weaknesses in basic agronomy. Most estates do not use soil augers, and soil sampling is often inconsistent or unscientific. This leads to overuse of artificial fertilizer, underinvestment in regenerative practices, and weak soil organic matter (SOM). Without scientific soil management, even a world-class tea origin can lose its competitive edge. Encouragingly, discussions are already underway with the Assistant Indian High Commissioner in Kandy to explore sourcing 3,000 scientifically engineered soil augers for Sri Lanka’s perennial agriculture sector—a transformative step toward soil intelligence and sustainable input management.

Improving SOM, moderating fertilizer misuse, and systematically diagnosing soil nutrient deficiencies represent true sustainability—not cosmetic commitments. Plantation agriculture, which supports over one million Sri Lankan livelihoods, depends on this shift.

The Real Economic Challenge: Price per Kilogram

The most urgent sustainability problem is not climate change or labour cost—it is the low price per kilogram Sri Lanka receives for its tea. Nearly 20% of the tea leaf becomes “refuse tea”, a stigmatized fraction that still contains antioxidants and valuable nutrients but fetches a low price at auctions. The system inherently undervalues almost a fifth of the raw material.

A rational solution is to market the entire tea leaf without discrimination, transforming every component—tender leaf, mature leaf, fiber, and fines—into a premium product with a minimum retail value of USD 15 per kilogram. Achieving this requires product innovation, not further cost reduction.

Ceylon Pot Tea: A Transformative Opportunity

Ceylon Pot Tea emerges as a comprehensive solution capable of addressing long-standing structural issues in Sri Lanka’s tea industry. Unlike traditional tea grades, Pot Tea compresses the entire fired dhool into a high-value cube, similar to the global success of soup cubes. Every part of the leaf is represented, unlocking maximum biochemical utilisation and offering consumers a fuller taste profile with richer aroma, deeper colour, and higher antioxidant content.

Pot Tea is perfectly aligned with the health and wellness market, one of the fastest-growing global consumer segments. As an Herbal Medicinal Beverage (HMB), it captures the complete phytonutritional matrix of the tea leaf, including polyphenols, catechins, and climate-influenced compounds unique to Ceylon. The product also offers storytelling power: every cube reflects the terroir, the gentle fingers that plucked the leaf, and the mystical nature of tea grown in a land with unusually low gravitational intensity.

Already, international partners—particularly in Russia—and domestic innovators have expressed enthusiasm. Pot Tea aligns closely with the policy direction set by the Hon. Samantha Vidyarathne and the NPP Government, especially the national goal of achieving 400 million Kgs of national annual production per year by unlocking new value chains and premium product categories.

Why Immediate Government Intervention Is Necessary

For Sri Lanka to fully benefit from Ceylon Pot Tea and other modernized value chains, the government must urgently introduce:

1. Minimum Yield Benchmarks per hectare (3-year targets) for all perennial crops, informed by scientific investment appraisals.

2. A classification shift from “plantations” to land-based investment enterprises, recognising the capital-intensive, long-term nature of tea cultivation.

3. Incentives for soil testing, soil auger adoption, and SOM improvement programs.

4. Support for value-added tea manufacturing and export diversification.

These steps would create an enabling environment for Pot Tea to scale rapidly and position Sri Lanka as the world’s leading innovator in tea-based wellness products.

Way Forward: Positioning Ceylon Pot Tea for Global Leadership

The path ahead requires a coordinated national and industry-level effort. Sri Lanka must shift from simply producing tea to designing tea experiences. Ceylon Pot Tea can lead this transformation if:

1. Branding and Certification Are Strengthened

CCT (Ceylon Certified Tea) standards must be universally adopted to guarantee purity, origin authenticity, and ethical production practices.

2. Research, Soil Science & Agronomy Are Modernized

With scientific soil audits, optimized fertigation, and regenerative agriculture, Sri Lanka can unlock higher yields and stronger biochemical profiles in its leaf.

3. A Global Wellness Narrative Is Created

Position Pot Tea as a nutritional, therapeutic, anti-aging, and calming beverage suited for the modern lifestyle.

4. Export Market Activation Begins Immediately

Pilot shipments, influencer partnerships, and cross-border digital campaigns should begin with Russia, the Middle East, Japan, and premium EU markets.

5. Producers Are Incentivised to Convert Dhools to Cubes

This ensures minimal waste, improved margins, and equitable value distribution across the supply chain.

Conclusion: A New Dawn for Ceylon Tea

Ceylon Pot Tea offers Sri Lanka a rare chance to pivot from a commodity-driven past to a premium, wellness-oriented, high-margin future. It aligns economic sustainability with environmental responsibility. It empowers estate communities with modern agronomy. And most importantly, it transforms every gram of the tea leaf into value—finally rewarding the land, the planter, and the plucker.

If implemented with vision and urgency, Ceylon Pot Tea will not only revitalise an industry under immense pressure but also secure Sri Lanka’s place as the world’s most innovative and scientifically grounded tea nation.

By. Dammike Kobbekaduwe

(www.vivonta.lk & www.planters.lk) ✍️

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Lakshman Balasuriya – simply a top-class human being

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It is with deep sorrow that I share the passing of one of my dearests and most trusted friends of many years, Lakshman Balasuriya. He left us on Sunday morning, and with him went a part of my own life. The emptiness he leaves behind is immense, and I struggle to find words that can carry its weight.

Lakshman was not simply a friend. He was a brother to me. We shared a bond built on mutual respect, quiet understanding, and unwavering trust. These things are rare in life, and for that reason they are precious beyond measure. I try to remind myself that I was privileged to spend the final hours of his life with him, but even that thought cannot soften the ache of his sudden and significant absence.

Not too long ago, our families were on holiday together. Lakshman and Janine returned to Sri Lanka early. The rest of the holiday felt a bit empty without Lakshman’s daily presence. I cannot fathom how different life itself will be from now on.

He was gentle and a giant in every sense of the word. A deeply civilized man, refined in taste, gracious in manner, and extraordinarily humble. His humility was second to none, and yet it was never a weakness. It was strength, expressed through kindness, warmth, and dignity. He carried himself with quiet class and had a way of making everyone around him feel at ease.

Lakshman had a very dry, almost deadpan, sense of humor. It was the kind of humor that would catch you off guard, delivered with too straight a face to be certain he was joking, but it could lighten the darkest of conversations. He had a disdain for negativity of any kind. He preferred to look forward, to see possibilities rather than obstacles.

He was exceptionally meticulous and had a particular gift for identifying talent. Once he hired someone, he made sure they were cared for in unimaginable ways. He provided every resource needed for success, and then, with complete trust, granted them independence and autonomy. His staff were not simply employees to him. They were family. He took immense pride in them, and his forward-thinking optimism created an environment of extraordinary positivity and a passion to deliver results and do the right thing.

Lakshman was also a proud family man. He spoke often, and with great pride, about his children, grandchildren, nephews, and nieces. His joy in their achievements was boundless. He was a proud father, grandfather, and uncle, and his devotion to his family reflected the same loyalty he extended to his colleagues and friends.

Whether it was family, staff, or anyone he deemed deserving, Lakshman stood by them unconditionally in times of crisis. He would not let go until victory was secured. That was his way. He was a uniquely kind soul through and through.

Our bond was close. Whenever I arrived in Sri Lanka, it became an unspoken ritual that we would meet at least twice. The first would be on the day of my arrival, and then again on the day I left. It was our custom, and one I cherished deeply. We met regularly, and we spoke almost daily. He was simply a top-class human being. We were friends. We were brothers. His passing has devastated me.

Today I understood fully the true meaning of the phrase ‘priyehi vippaogo dukkho’ — (ප්‍රියෙහි විප්පයෝගෝ දුක්ඛෝපෝ) ‘separation from those who are beloved is sorrowful.’

My thoughts and prayers are with Janine, Amanthi, and Keshav during this time of profound loss. Lakshman leaves behind indelible memories, as well as a legacy of decency, loyalty, and quiet strength. All of us who were fortunate to know him will hold that legacy close to our hearts.

If Lakshman’s life could leave us with just one lesson, that lesson would be this. True greatness is not measured in titles or possessions, but in the way one treats others: with humility, with loyalty, with kindness that does not falter in times of crisis. Lakshman showed us that to stand by someone, to believe in them, and to lift them up when they falter, is the highest of callings, and it was a calling he never failed to honour.

Rest well, my dear friend.

Krishantha Prasad Cooray

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