News
Hambantota Port moving at speed despite gloomy market
The Hambantota Port has signed deals with more than 30 countries as it looks to promote its operations globally.
Hambantota International Port Group (HIPG) said that the promotional activities have garnered commendable results despite the gloomy market situation experienced globally.
“We are rapidly moving to diversify HIP’s industrial zone portfolio and at the same time we are widely promoting the location internationally. We have signed with more than 30 investors from across the globe i.e. the UK, Singapore, Japan, Sri Lanka, China and now the Maldives,” Johnson Liu, CEO of HIPG said.
HIPG in a release said: The new operational blueprint of the Hambantota International Port (HIP) is impacting all aspects of the port’s activities. “HIP Speed” is a concept to increase efficiency and momentum across port operations for the benefit of all stakeholders.
“HIP Speed will bring a new dimension to investment in port operations and allied industries. We put this formula in place taking into consideration the opportunities that will emerge in the coming year, when supply and demand structures will change and trade routes will be reinvented. The Hambantota Port is well placed on the global maritime map for growth and investment, and this formula is to strengthen processes and infrastructure to capitalize on future opportunities. As per our overall plans the HIP will be a port that will complement the services of other ports operating in Sri Lanka,” says Johnson Liu, CEO of the Hambantota International Port Group (HIPG).
HIP Speed is modeled on previous hands-on experience of the current CEO in other facilities managed by the CMPort, ensuring efficiency and momentum of projects that would otherwise have dragged their feet in planning and execution. The concept also extends to customers establishing their operations in the port’s industrial zone; so that they receive optimum support in clearing speedily any bottlenecks. HIPG is also working on establishing branch offices of leading investor companies, shipping and logistics agents, and has leased out seven floors of the Maritime Centre to more than 30 interested parties. The One Stop Service (OSS)facility with representative offices from BOI and Customs have made the whole investment process more efficient, the same facility will be available from the Ministry of Industries in the near future. The aim of this effort is to minimise the burden on investors when obtaining required certification and approvals from government institutions.
Tissa Wickramasinghe, Chief Operating Officer of HIPG says, “The first two years of our operations was dedicated to setting up the processes, which included drawing up the master plan and putting in place a Standard Operating Procedure (SOP). This was vital as when launching a project such as this we need to get everything right the first time over. While we looked at overseas models for benchmarking and maximising our operational efficiency, we were guided mainly by the global standards and procedures of CMPort, which operates more than 50 ports and terminals all over the world. In the first half of 2021, CMPort achieved double-digit growth on its container throughput and bulk cargo volume at home and abroad. The Group’s ports handled a total container throughput of 66.57 million TEUs, up by 21.3% compared with the corresponding period last year, and bulk cargo volume of 284 million tonnes, up by 42.8% over the same period of the previous year.”
Their partnership with the Shenzhen Xinji Group to set up a plug and play ‘Park in park’ manufacturing facility within the industrial zone is an example of how HIP Speed operates. The project went into construction within 20 days of signing the partnership agreement with HIPG.
Likewise, several projects have reached the construction stage, like the Ceylon Tire Manufacturing facility, which is nearing completion of leveling and clearing work
Another area HIP Speed also has worked well is in fast tracking the promotion of the port internationally. The promotional activities have garnered commendable results despite the gloomy market situation experienced globally. “We are rapidly moving to diversify HIP’s industrial zone portfolio and at the same time we are widely promoting the location internationally.” says Johnson Liu, CEO of HIPG.
HIP Speed prioritises operational efficiency, constantly reviewing processes to maximise the throughput and give maximum benefit to customers.
A state-of-the-art yacht building facility is also to be set up at the port by Sea Horse Yachts (Pvt) Ltd. HIPG recently entered into an agreement with the newly incorporated company, a premium luxury yacht builder which is privately owned by boating enthusiasts from Maldives. The initial investment for the facility, which will be located within the Hambantota International Port, is set at approximately USD 58 million (Sri Lankan Rupees 11.5 billion) and production is set to commence by early 2022.
The port’s overall cargo handling volume increased by 186% in the first half of this year in comparison to the corresponding period in 2020. The total throughput increased from 420,421 MT by end June 2020, to a significant 1,206,425 MT.
The vision of HIPG is to develop the Hambantota International Port to become an energy hub for South Asia. In order to build this energy hub, HIPG entered into a strategic partnership with Sinopec Fuel Oil Lanka Limited (SFOL) to provide bunkering services as a wholesale exporter and also service vessels calling HIP as a value added service. Bunkering is an important part of HIP’s energy services portfolio. Sinopec with their vast resources guarantees the supply of VLSFO in Hambantota currently and MGO in the near future, enabling the port to service all vessels plying the principal sea route in the Indian Ocean.
Transshipment of LPG and delivery for local consumption is also a part of the energy hub mix at HIP, which has the two main players operating supply facilities within the port. HIP has also partnered with Intertek Lanka (Pvt) Ltd to establish a state-of-the-art petroleum testing laboratory, within the port to provide services to the energy hub, further strengthening HIP capacity to provide these services.
Not only is HIP investing in the efficiency of port operations, they are also helping the surrounding community deal with the pandemic in a timely manner. HIPG has provided funding to establish a fully-fledged PCR testing laboratory at the Hambantota District General Hospital. Part of the funding for the PCR testing facility comes from the China Merchants Foundation (CMF), the philanthropic arm of HIPG’s main shareholder, CMPort. Many donations of personal protection equipment have also been made to government institutions in Hambantota.
In addition to bringing in new foreign investment, HIPG is increasing its own investment footprint at Hambantota Port, as well as creating more employment opportunities for locals and promoting the development of local industries. The group will continue to promote the port and the Hambantota district, with a view to turning it into a new Maritime centre, which in turn will have the desired impact on the Sri Lankan economy as a whole.
News
President proposes; Speaker disposes
AKD’s request to Harsha:
Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.
Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.
Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.
The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”
Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”
The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.
The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.
Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.
The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.
Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.
The Parliament has not so far called for applications to fill the forthcoming vacancies.
by Shamindra Ferdinando ✍️
News
Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP
The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.
Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.
Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.
The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.
He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.
Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.
The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.
Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.
by Chaminda Silva ✍️
News
CID summons SJB MP for criticising education reforms
SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.
He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.
Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.
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