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Opinion

Unwise double standards on East Container Terminal

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Protest against ECT being awarded to Adani group of India

 

By Harim Peiris

Earlier this week, the Government officially announced that it would not proceed with the proposal to develop the East Container Terminal (ECT) of the Colombo Port, as a joint venture between the Sri Lanka Ports Authority (SLPA) and the Adani Group of India. The announcement by the government, through the Prime Minister no less, raises important questions marks and doubts over the vistas of prosperity and the claims of technocratic policy making and efficient governance, we were all promised by the Government at preceding elections.

 

Private investment into
the Colombo Port

Firstly, a quick look at the Colombo Port would demonstrate that we already have the private sector operating terminals in the Colombo Port, namely the South Asian Gateways Terminals (SAGT), a John Keells Holdings investment and more recently, under the previous Rajapaksa Administration the Colombo International Container Terminal (CICT), a venture with the China Merchants Port Holdings. In both SAGT and CICT, the stake of the Sri Lanka Ports Authority (SAGT) is only fifteen percent (15%). In contrast the proposed joint venture for the ECT with the India’s Adani Group, was to have a majority (51%) Sri Lankan stake, through the Sri Lanka Ports Authority (SLPA) and the Adani group and other project managers, the balance minority stake only.

Further in the case of the CICT, the China Merchants Port Holdings, is a Chinese Government entity and so the investor is not a foreign private investor, but a foreign sovereign entity. The same Chinese Government entity, the China Merchants Port Holdings (China Merchants) also owns 85% of the Hambantota Port. So, the principal of private sector and foreign investor participation in Sri Lankan ports, is a clearly established Sri Lankan State policy, going back over twenty years, the SAGT having commenced operations in 1999.

 

Policy clarity and efficient governance

Foreign direct investment (FDI) is the name of the game for Sri Lanka, to both see significant foreign exchange inflows into Sri Lanka and also to significantly improve our infrastructure which will directly contribute to increased growth in our GDP. Both of these are areas where Sri Lanka lags behind our peer group in South and East Asia. Sri Lanka’s GDP growth of the past eight years or so, have been lower than our war era GDP growth and shipping, especially transshipments is a significant potential growth area, for which port capacity and operating efficiency are crucial.

Regarding foreign direct investment (FDI) as well, Sri Lanka lags behind her peer group, especially through equity investments. Further FDI into infrastructure, is harder to attract, than say service industry investments, because infrastructure investments are not only significantly larger, in hundreds of millions of dollars, but also because the projects are long term in nature. Accordingly, the investment by the Adani group would have been a huge foreign direct investment by a private (not government) Indian company and a precursor and confidence booster for other Indian investments. Sri Lanka, geographically positioned as we are, should endeavour to benefit ourselves from the economic growth and success story next door.

A crucial and essential feature of both public policy and governance is that there be both clarity and certainty. In that respect, honouring commitments and especially written agreements become crucial in the conduct of both international relations and commercial activity. The adherence to contracts and agreements is an essential feature of international, local and every common law tradition in the world.

It is in that context, that the previous Sirisena / Wickremesinghe Administration though extremely critical of the Port City and other grandiose projects of dubious utility value, honoured those contracts and proceeded with the projects because of binding nature of the agreements. It was therefore entirely predictable, the immediate Indian Government response to the Government’s announcement, through its High Commission in Colombo, when it announced that the Indian Government expects adherence and implementation of the tripartite Memorandum of Cooperation (MOC) signed between Sri Lanka, India and Japan, our largest bilateral donor by far, for the development of the ECT.

Reneging on contracts, tearing up the rule book and thumbing our nose at our closest (and giant) neighbour India, together with offending our largest bi lateral donor by far, Japan is very unwise and hardly likely to lead us to vistas of prosperity. Not only has Japan been a firm and reliable friend of Sri Lanka for over half a century, they have been Sri Lanka’s largest bilateral donor. The Japanese also have considerable sway over the Asian Development Bank, which has been one of the largest, long term concessionary lenders for infrastructure to Sri Lanka. Their proposed loan for the ECT was at a half percent compared with the hefty premium to Libor that all the Chinese loans came at. Compare half percent to say, four or five percent for a half a billion dollars. The math does not add up. This is also after the government unilaterally cancelled the Japanese light rail project, which was meant to address the rather obvious need for mass rapid transit in the Colombo district, beyond our colonial era railways.

The Government position seems very strange. We have declined foreign direct investment and torn up an agreement with our largest neighbour India and our largest donor Japan. We find the East Terminal in the Colombo Port strategic but not the Western terminal, or the SAGT or the CICT or even the Hambantota port, just the East Terminal. We can forgive those who suspect a hidden hand and it is not too hard to see from where. Monopolistic or oligopolistic behaviour is rational for the monopolist or the oligarch. The problem is when the Government is subject to their pressure.

In contrast to the Government, the main opposition Samagi Jana Balawegaya (SJB) of Opposition Leader Sajith Premadasa, has very wisely taken a well-balanced position on the ECT, saying a public private partnership is the best way forward.

(The writer served as Advisor, Ministry of Foreign Affairs from 2016-17)



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Opinion

Learning from global models to address flooding and water shortage in Sri Lanka

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by Sudharman Siripala

Sri Lanka is grappling with the increasing threat of climate change, which has led to unpredictable weather patterns. The country faces a dangerous combination of flooding in some regions and water shortages in others, a situation exacerbated by shifting rainfall patterns. Rivers originating in the Central Hills, such as the Mahaweli, Kalu, and Kelani, flow through much of the country, but these water sources are not being distributed evenly. Districts like Monaragala and Hambantota, located in the dry zone, are experiencing severe water shortages. To address this challenge, experts suggest the development of an interconnected river system to harness excess water during floods and redirect it to drier areas, ensuring a year-round water supply for agriculture and daily use.

Global Case Studies in River Management

Several countries facing similar water-related challenges have implemented successful water management systems that Sri Lanka could adapt to its unique circumstances:

The Netherlands – Room for the River Programme

The Netherlands, a country prone to flooding, widened its rivers and relocated dikes to create floodplains. This approach allows rivers to overflow without damaging urban areas, while preserving water flow and natural habitats. Sri Lanka could apply this concept by designating specific riverbank areas for temporary flood storage.

China – South-North Water Transfer Project

China’s massive project channels excess water from the flood-prone Yangtze River to drier northern regions. This system of canals and reservoirs could inspire Sri Lanka to divert water from rivers in the Central Hills to drier areas in the south and east.

Bangladesh – River Interlinking Projects

Bangladesh has implemented river interlinking projects to redistribute water from flood-prone rivers, such as the Brahmaputra, to drier regions. Sri Lanka could link its major rivers like the Mahaweli and Kelani to smaller rivers in water-scarce districts to balance water distribution.

India – National River Linking Project

India’s National River Linking Project connects major rivers to manage both floods and droughts. Sri Lanka could use similar strategies, connecting rivers around the 500-foot contour line in the Central Hills to help distribute water more effectively.

United States – Mississippi River and Tributaries Project

The Mississippi River system combines levees, floodways, and diversion channels to manage flooding. Sri Lanka could adopt similar flood-control measures in vulnerable river basins such as the Kelani and Kalu.

Japan – Underground Reservoirs and Flood Channels

Japan’s G-Cans Project in Tokyo channels excess water into underground reservoirs to prevent urban flooding. A similar underground system could be implemented in Colombo and other flood-prone cities in Sri Lanka.

Singapore – Marina Barrage

Singapore’s Marina Barrage serves as both a flood control measure and a water supply resource. Sri Lanka could develop similar systems to control flooding in urban areas and ensure water availability during dry spells.

Thailand – Chao Phraya River Basin Management

Thailand uses diversion channels in the Chao Phraya River Basin to prevent flooding in Bangkok and direct water to agricultural areas. Sri Lanka could replicate this by creating diversion channels to supply water to its agricultural zones.

Actionable Solutions for Sri Lanka

Develop an Interconnected River System

Establish water diversion channels along the 300-500 meter contour lines of the Central Hills to capture excess rainfall during floods and redirect it to drier areas.

Build Reservoirs and Storage Tanks

Construct reservoirs to store diverted water, ensuring a steady supply for agriculture and domestic use. Sri Lanka has around 14,000 ancient tanks out of 30,000 that could be revitalized for this purpose.

Improve Urban Flood Defenses

Drawing inspiration from Japan and Singapore, build underground reservoirs and flood channels in cities like Colombo to mitigate urban flooding.

Strengthen Watershed Management

Restore natural floodplains and create wetlands to absorb excess rainwater, as seen in the Netherlands, helping to reduce flood risks.

Encourage Public-Private Partnerships

Foster collaboration between the public and private sectors to fund large-scale water management infrastructure, leveraging models from China and the United States.

Leverage Technology

Utilise modern forecasting and real-time water management systems, similar to those in Bangladesh and Thailand, to monitor water levels and manage river flows dynamically.

International Collaboration

Form partnerships with countries that have successfully implemented flood control and water management systems to share expertise and technology.

Sri Lanka’s dual challenges of flooding and water scarcity, compounded by climate change, require immediate action. By developing an interconnected river system and learning from successful global water management models, Sri Lanka can mitigate the effects of floods while ensuring a sustainable water supply for agriculture and daily life. It is crucial for the country to act now, as these solutions have the potential to transform Sri Lanka’s water management system for the better.

Sudharman Siripala Managing Director of Geoinformatics Group and a Registered Licensed Surveyor, specializes in geo-spatial applications. He also serves as a freelance value chain consultant for Vivonta Green Tech Consultants (www.vivonta.lk)

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Doctor’s plight

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Some people have found fault with a female doctor for not coming forward to identify her rapist and help make him pay for his crime.

Do they not realise the emotional toll of facing her rapist again?

There should be a way for survivors to testify directly to the judge without enduring such distressing encounters. Making a victim relive her trauma in this manner is akin to subjecting her to the ordeal all over again.

A Ratnayake

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Opinion

Developing attitudes of schoolchildren for development

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Sri Lanka was once at an economically comparable level with some of the world’s most developed countries in the 19th century. However, despite our country’s potential, we are still striving to fully develop. Many people often blame politicians, government officers, or various sectors for the situation. However, I believe the root cause of these issues lies not in any individual or group, but in the lack of good attitudes within our society.

We are investing significant resources into our education system, which is funded by the taxes of hard- working citizens. However, when we examine the outcomes, we realise that the academic achievements of our graduates alone are not enough. There are instances where professionals, despite having the necessary qualifications, fail to uphold ethical standards. In some cases, this even results in malpractice or harmful actions that damage our country’s reputation and progress. This highlights the gap between academic success and real-world responsibilities.

The education system, which is currently focused on competitive exams and rote learning, does not emphasise the development of attitudes and character in students. While our students are academically capable, many lack the qualities required to contribute positively to society. This lack of focus on social values, such as patriotism, selflessness and respect for elders, is holding us back from achieving the level of progress we deserve.

To address these concerns, I wrote to His Excellency, the President of Sri Lanka, on 24th September 2024, proposing education reforms that emphasise not only academic qualifications but also attitudes, ethics, and social responsibility. I suggested a holistic approach to university admissions and government recruitment, incorporating moral integrity, character, and extracurricular involvement, key traits for fostering well- rounded, responsible citizens. More importantly, I strongly recommended introducing a compulsory school subject, with both theory and practical components, focused on attitude development, which would be evaluated in university admissions. Encouraging extracurricular participation alongside academics will help shape ethical and socially responsible individuals.

I am pleased to inform you that the President, recognising the importance of these reforms, has directed the relevant ministries (by a letter dated 24th October 2024) to explore integrating these ideas into the education system. This marks a crucial step in transforming the values and attitudes of our youth for the nation’s benefit.

However, meaningful change requires collective effort. Parents, teachers, students, and citizens all play a role in shaping Sri Lanka’s future. Together, we must instill responsibility, ethics, and patriotism in the next generation. I invite you to share your thoughts and suggestions on further enhancing the values and attitudes of our youth. Your feedback will be invaluable in building a brighter future for Sri Lanka, one driven not just by knowledge, but by integrity and character.

Dr. Mahesh Premarathna

Research Fellow, National Institute of Fundamental Studies, Sri Lanka Email: mahesh.pr@nifs.ac.lk

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