Business

The SL state’s enduring role in the CHEC Port City Colombo project

Published

5 years ago

2021/06/22

By Lynn Ockersz

The Sri Lankan state will exercise sovereign control over the CHEC Port City Colombo project and would remain accountable to the people of Sri Lanka by virtue of the fact that the project would remain open to scrutiny by the Sri Lankan parliament, Assistant Managing Director, CHEC Port City Colombo (Pvt) Ltd. Thulci Aluwihare told ‘The Island Financial Review’ in an interview.

Besides, all revenues received by the project would be remitted to Sri Lanka’s Consolidated Fund and would remain within the country, Aluwihare pointed out in a wide-ranging interview with this newspaper, where he debunked the allegation that the CHEC Port City Colombo project will be a ‘sell out’ to the Chinese, rendering the investment area a ‘Çhinese colony’. Besides, the Colombo Port City would not turn Sri Lanka into a ‘money laundering haven.”

Elaborating Aluwihare said: ‘Principal among our aims is the attraction of foreign investment to the country. $ 1.4 billion has been spent by the project company over reclaiming the relevant land from the sea. For a consideration, the state has granted a ‘No Lease Hold Right’ over 116 hectares of the project land which is the ‘master lease’. Under this arrangement 48 marketable blocks of land would be on offer for investment. What is of importance is that in all these transactions the state will be a principal party.

“Even if an investor obtains a “No Lease Hold Right” from the state in respect of a project, the investor would need to obtain a licence from the CHEC Port City Commission to operate. The Commission would issue such licenses with conditions. And the Commission holds the right to revoke such licenses if the conditions are not met.

“In all these transactions, the government of Sri Lanka is the lessor. The investor would be signing a lease with the government of Sri Lanka, who will be the landlord.

‘The majority of members of the Commission would be Sri Lankans. But we need experienced, competent people for this apex body. Accordingly, the Commission needs to enjoy some autonomy and independence as well in employing personnel.

“The anti-money laundering laws that have been operative in this country would continue to be enforced strongly. It is only loose regulatory laws that lead to problems like money laundering. But there will be no let-up by Sri Lanka on this score. The monetary authorities would continue to stringently apply the regulations but these regulations should also need to be market-driven. We expect sophisticated transactions though.

‘It is important to point out that the local courts will have jurisdiction in the Port City. Here too there is no dilution of the state’s sovereignty.

“Our region has progressed into a services economy. We need to compete with countries such as Singapore, India, Indonesia and Vietnam, for example, to attract FDI. You need to offer fiscal and other incentives to attract FDI to Sri Lanka. A dip of 40 per cent of FDI in Sri Lanka last year, drives the point home. But given our location, we are in a position to talk about Sri Lanka as a business destination.

“Of principal importance is the supply chain impact the Port City project would have on Sri Lanka. Local enterprises dealing with the Port City will be paid in dollars and not local currency. Even Sri Lankan SMEs which are part of the supply chain will be paid in dollars. There is also potential for local employment generation where the income earners will be paid in dollars.

“At present there are some 4000 employment opportunities for locals in the Port City. Currently, 1500 to 1800 locals are employed in the project. So, there are growing opportunities for locals in this initiative. They would get the opportunity to work for some the world’s most prominent brands in their own backyard and for dollar remuneration.

‘Sri Lanka produces 25,000 graduates annually. One third of these belong to the science, technology, engineering, mathematics and allied fields. But 20 to 25 percent of these graduates migrate. Our graduates could now work for a multinational company if the opportunities offered by the Port City project are availed of.”

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Business

Super El Niño threatens to deepen Sri Lanka’s drought and economic woes

Published

22 hours ago

2026/09/4

Thilina Walpola

By Ifham Nizam

A potentially dangerous El Niño is gathering strength across the Pacific, with the World Meteorological Organization (WMO) warning that the climate event is expected to become very strong and continue into February 2027, raising the risks of drought, floods, extreme heat and major disruptions to rainfall patterns worldwide.

The warning has particular significance for Sri Lanka, where communities in several agricultural districts are already facing severe drought, depleted water sources and shrinking farm incomes.

The WMO said yesterday that forecasts from its Global Producing Centres show an “exceptionally high likelihood of nearly 100%” that El Niño will persist through February next year. The organisation said this is the first time one of its El Niño/La Niña updates has been so unequivocal, reflecting strong agreement among forecasting systems.

The event, driven by exceptionally warm waters in the tropical Pacific, is expected to strengthen further in the coming months, reach very strong intensity and peak towards the end of this year. Its climate impacts, however, are expected to continue well into 2027.

According to Meteorological Organization

Sri Lanka is already experiencing the consequences.

A Reuters report published on Wednesday from drought-affected areas said rainfall deficits of between 85% and 100% have been recorded in important farming regions including Ampara and Monaragala.

Wells, tanks, rivers and lakes have dried up, while tens of thousands of people are depending on government water deliveries, with some remote communities reportedly waiting up to 23 days for supplies.

The drought is also rapidly becoming an economic problem for rural communities. Croplands have withered, livestock operations have been affected and farmers who have lost their harvests are being forced to seek daily-paid employment to survive.

The latest WMO outlook also warns that the consequences of El Niño will not necessarily be uniform. The severity and timing of impacts in individual countries depend on geography, season and other climate drivers, including conditions in the Indian and Atlantic oceans.

For Sri Lanka, the Indian Ocean Dipole (IOD) will therefore be crucial. The WMO expects a positive IOD to develop, with a September-November seasonal mean of about 0.9°C. This could modify the normal influence of El Niño on rainfall over the region.

That creates another potential risk for Sri Lanka: the country may have to prepare not only for continued drought but also for episodes of intense rainfall, flooding and landslides later in the year. Climate variability increasingly means that a prolonged water shortage can be followed by sudden and destructive rainfall rather than a gradual return to normal conditions.

For Sri Lanka, the warning should therefore be viewed as an economic and national-planning issue, not simply a meteorological forecast. Agriculture, drinking water, electricity generation, food imports, public expenditure and rural livelihoods could all be affected.

Business

ABC Trade & Investment – All-China Environment Federation partner to drive Sri Lanka’s green infrastructure and investment

Published

22 hours ago

2026/09/4

Thilina Walpola

ABC Trade & Investments (Pvt) Ltd, a leading homegrown conglomerate in Sri Lanka’s ICT distribution and diversified business landscape, has formally entered into a strategic Memorandum of Understanding (MoU) with the All-China Environment Federation (ACEF). The partnership establishes a collaborative framework aimed at accelerating new-energy development, water management, and environmental protection projects across Sri Lanka.

The agreement bridges advanced Chinese engineering capabilities, equipment, technical expertise, and investment resources with ABC Trade & Investments’ local operational strength, market insight, and project implementation skills. By pairing international technology with on-the-ground execution, the initiative is designed to address Sri Lanka’s long-term environmental and civil infrastructure priorities.

The MoU was signed by Amalrajah Jayaseelan, Director/CEO of ABC Trade & Investment (Pvt) Ltd, and Shi Xiang, Secretary-General of the Belt & Road Eco-Industry Cooperation Working Committee of ACEF. The signing took place during the China–Sri Lanka Environmental & Energy Exchange and Cooperation Meeting at the Nondescripts Cricket Club Grounds in Colombo, held under the theme “Empower Green Development, Jointly Build a New Pattern of China–Sri Lanka Environmental & Energy Industry.”

Business

Heavy buying interest slows down stock trading

Published

23 hours ago

2026/09/4

Thilina Walpola

By Hiran H. Senewiratne

The CSE yesterday was very active at the outset but later slowed down due to heavy buying interest noted for select stocks.Amid those developments both indices moved upwards. The S and P SL20 went up by 23.73 points. Turnover stood at Rs 2.44 billion with 10 crossings.

The crossings were: Renuka Foods 19 million shares crossed for Rs 502 million; its shares traded at Rs 25.30, Dipped Products 1.9 million shares crossed to the tune of Rs 117 million; its shares traded at Rs 60.50, JKH 3.9 million shares crossed for Rs 78 million; its shares sold at Rs 19.70, Dialog Axiata 1 million shares crossed to the tune of Rs 46.6 million; its shares traded at Rs 46.40, Tokyo Cement 500,000 shares crossed for Rs 39.5 million; its shares sold at Rs 79 and Watawela Plantations 800,000 shares crossed for Rs 34 million; its shares were Rs 42.50 each.

In the retail market companies that mainly contributed to the turnover were; Vallibel Finance Rs 281 million (3.3 million shares traded), Dipped Products Rs 114 million (1.9 million shares traded), Haycarb Rs 90 million (424,000 shares traded), Alumax Rs 42 million (2.6 million shares traded), HNB Rs 38.5 million (102,000 shares traded), Swisstec Rs 30 million (506,000 shares traded) and Sierra Cables Rs 34 million (880,000 shares traded). During the day 118 million share volumes changed hands in 17802 transactions.

It is said that mixed market reactions were noted during the day. Financial sector, especially Vallibel Finance, performed well, while the manufacturing sector, especially JKH and Hayleys , performed significantly.

Meanwhile, Co-operative Insurance Company announced the redemption of 1,100,000 cumulative redeemable preference shares issued in December 2020 to the Health Department Co-Operative Thrift & Credit Society.

The total redemption consideration of Rs 16.61 million, including a 9 percent per annum cumulative dividend, is set for settlement on August 31, 2026.

Yesterday the rupee was quoted at Rs 328.25/35 to the US dollar in the spot market, stronger from Rs 328.30/60 the previous day, while bond yields were somewhat steady, dealers said.