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Friday December 8th, 2023

Sri Lanka president orders immediate termination of Japan-funded light rail project

Artists rendition of the cancelled Japanese funded project

ECONOMYNEXT – President Gotabaya Rajapaksa has directed Sri Lanka’s Ministry of Transport to terminate a Japan International Cooperation Agency (JICA)-funded light railway transit (LRT) project with immediate effect, according to a letter that circulated on social media yesterday (23) which has since been verified.

In a letter written to the ministry secretary, Secretary to the President P B Jayasundara said the project is “very costly and not the appropriate cost effective transport solution for the urban Colombo transportation infrastructure.”

“A suitable transport solution could be worked out in consultation with the Ministry of Urban Development and Housing and the Department of National Planning of the Ministry of Finance,” Jayasundara wrote, adding that the president had also ordered the immediate closure of the project office.

A copy of the letter tweeted by BBC journalist Saroj Pathirana

In June this year, Sri Lanka halted the same LRT project, anticipating high costs and low returns. The project was expected to solve the traffic problem in the key Colombo to Malabe corridor and several other corridors in other stages.

“The project was not halted by Japan but the government of Sri Lanka,” Minister Bandula Gunewardene told reporters in Colombo at the time.

Sri Lanka signed a 30 billion yen concessionary loan with the government of Japan in March 2020 for the projects. The government also expressed concern about buildings that might be affected by the LRT.

However, JAICA at the time said by building the LRT on towers – as is done in other built-up cities – disruptions would be minimized. In built-up cities, urban transit systems are either built on towers or underground.

Minister Gunewardenes claimed that the project would be awarded to a Chinese company at a 6 percent interest rate compared to a lower rate by Japan may be made by those who would stand to benefit from the light rail project.

Later that month, Sri Lanka announced plans to request proposals to fund a 2.2 billion US dollar light rail transit project after cancelling the Japanese soft-loan project. The project was expected to involve up to 2.0 billion dollars of related investments, a top official told EconomyNext at the time amid concerns that the project will be a non-starter.

Sri Lanka was reported to be preparing documents to request proposals from international investors to build the LRT which if built will run from Colombo’s Fort area to fast growing suburbs in Malabe and Athurugiriya, via the administrative capital of Sri Jayewardenepura.

There were concerns that halting rail projects which have solved traffic problems and made urban transit from Bangkok to Delhi more efficient would have long term negative fallout in urban pollution and productivity. (Colombo/Sep23/2020)

Comments (3)

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  1. Namal Perera says:

    Why not move it to Hambantota so that wild animals could travel.

  2. Guest UserAsoka Goonawardena says:

    When we stop killing bulls we can use them in Bulockcarts like in the olden days in the 21st century.Not a bad idea to save money

  3. Roger Haĺliday says:

    There are some jokers who said as goods cannot be transported the project should be scrapped. We have so called educated idiots in our country, perhaps a trip to a major provider of public transport I. E the UK will perhaps help these idiots to see the advantages. Well China will give them the 15% so let’s give it to the chinese

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Your email address will not be published. Required fields are marked *

  1. Namal Perera says:

    Why not move it to Hambantota so that wild animals could travel.

  2. Guest UserAsoka Goonawardena says:

    When we stop killing bulls we can use them in Bulockcarts like in the olden days in the 21st century.Not a bad idea to save money

  3. Roger Haĺliday says:

    There are some jokers who said as goods cannot be transported the project should be scrapped. We have so called educated idiots in our country, perhaps a trip to a major provider of public transport I. E the UK will perhaps help these idiots to see the advantages. Well China will give them the 15% so let’s give it to the chinese

SLPP enjoying “great demand” from potential presidential candidates: Namal

FILE PHOTO – President Gotabaya Rajapaksa with nephew Namal at the opening of the last part of the Southern Expressway/PMD

ECONOMYNEXT – The ruling Sri Lanka Podujana Peramuna (SLPP) enjoys “great demand” from potential presidential candidates, and the party will have to take a call on working with incumbent President Ranil Wickremesinghe, MP Namal Rajapaksa said.

Speaking to reporters on Thursday December 07, Rajapaksa claimed several names have come up concerning the SLPP’s candidate at next year’s presidential election.

“There is great demand: entrepreneurs, businessmen, politicians, are all there. There are presidents too, ready to come forward with our party,” he said.

“Out of all these people, we will put forward on behalf of our party the candidate that can take the country forward while stabilising the economy,” he added.

Commenting on continued support for President Wickremesinghe, Rajapaksa said the while SLPP at present works with the former in the present government, the party will have to decide whether that relationship continues going forward.

“The matter of whether we work with the United National Party (UNP) in the future – this is not a politics dependent on individuals; the SLPP is a party. We will talk as a party with other parties, but no discussions will be held centred around individuals,” he said.

Rajapaksa noted that Wickremesinghe was the only member of parliament representing the UNP at the time of his election by parliament following the resignation of his predecessor Gotabaya Rajapaksa .

“If we are to collaborate with the UNP in the future, we’ll have to discuss that. Once the party has decided on that, we can get a start on those discussions. Today, we work with the president in the present government,” he said.

Last month, when asked to comment on President Wickremesinghe’s 2024 budget, MP Rajapkasa sounded rather sceptical of the president’s ambitions for turning the crisis-hit economy around.

“We must study the budget. He had presented a lot of these proposals in last year’s budget too. They don’t seem to have been implemented,” Namal Rajapaksa said, speaking to reporters after the budget presentation Monday November 13 afternoon.

Rajapaksa’s father and leader of the SLPP former president Mahinda Rajapaksa, however, spoke in favour of Wickremesinghe’s budget.

Related:

Sri Lanka’s “forward-looking” 2024 budget will instill fiscal discipline: MR

While not without its shortcomings, the older Rajapaksa said, the 2024 budget is a forward-looking one that aims to ensure fiscal discipline and put Sri Lanka on the path to recovery. (Colombo/Dec07/2023)

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Sri Lanka ruling party MP contradicts poll to claim his party is overtaking president’s

ECONOMYNEXT – The ruling Sri Lanka Podujana Peramuna (SLPP) is rising from the ashes albeit at a slower than anticipated pace, while President Ranil Wickremesinghe’s United National Party (UNP) still commands only 1-2 percent of the vote, an SLPP legislator said.

MP S B Dissanayake, who is not a member of the cabinet of ministers headed by President Wickremesinghe, told reporters on Thursday December 07 that support for any major political party of the island nation is on a downward trend while the SLPP alone is gaining ground.

An independent poll by the Institute for Health Policy (IHP) however shows that this is decidedly not the case. Polling data for October showed that the leftist National People’s Power (NPP) had enjoyed support from 40 percent of likely voters, having dipped 2 percent from September, while the main opposition the Samagi Jana Balawegaya (SJB) stood at 26 percent, increasing four percent from 22 percent in September. President Ranil Wickremesinghe’s UNP’s support decreased marginally to 11 percent in October from September’s 13 percent. The SLPP also saw a decrease to 5 percent from the previous month’s 8 percent.

“You can’t gamble with elections. The election must be held. We always say electrons must be held. The presidential election must be held next year. There is no alternative,” said Dissanayake.

“Parliamentary elections can be called if needed. But that’s not how it is with the presidential election. Nominations for that will have to be called by September, October next year,” he added.

Asked by a reporter if the SLPP is ready for elections, Dissanayake acknowledged that support for his party had eroded, to nothing.

“We crashed to zero. We were turned to ashes. But we will rise from those ashes. We’re not where we thought we were. The 6.9 million [votes received at the 2019 presidential election] no longer applies. We’re at about half of that. But we’re rising, like this,” he said, gesturing upwards.

“As other major parties go in the opposite direction, we’re rising slowly. But the UNP is not. It’s still on the ground, and still at 1 to 2 percent,” he claimed.

“The SLFP is there too. Those who left us are the same. Even together they cannot form 1 percent. But we’re climbing,” he said. (Colombo/Dec07/2023)

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Sri Lanka president appoints main opposition MP advisor

ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe has appointed MP Vadivel Suresh as a Senior Advisor aimed at “fostering the integration of Hill Country Tamils into Sri Lankan society”, the president’s office said.

A statement from the President’s Media Divison (PMD) said Suresh’s “pivotal role will centre around overseeing the comprehensive integration of Hill Country Tamils, particularly focusing on the districts of Badulla, Nuwara Eliya and Rathnapura”.

“The Senior Advisor will play a key role in coordinating various initiatives related to the welfare of Plantation Companies, the promotion of women, safeguarding children, addressing disparities in Tamil schools and upgrading the delivery of health services,” the statement said.

In May this year, Suresh, who represents the main opposition Samagi Jana Balawegaya (SJB) in parliament and also serves as the general secretary of the Lanka Jathika Estate Workers’ Union, made headlines when he issued an ultimatum to opposition and SJB leader Sajith Premadasa, demanding an apology for a perceived slight on the Indian-origin Tamil community that Suresh represents. He also spoke favourably of President Wickremesinghe, hinting at a possible cross over.

Sri Lanka’s Indian-origin Tamils, most of whom have historically worked in the plantation sector and live in dire conditions on wages widely considered unacceptably low. Speaking at a May Day rally, the Badulla district MP said Premadasa must apologise to the estate Tamils for allegedly snubbing them at an event in Madulsima that he failed to attend.

“I would like to say to our leader, sir, do not take us for granted,” said Suresh.

“If you need us to stay with you, come right now to Madulsima and apologise to my people and then we shall restart our journey. Otherwise I won’t be part of that journey. There will be no Vadivel Suresh. If you don’t apologise to my people, I won’t be with the SJB,” he said.

Making matters worse, the MP also expressed a willingness to join President Wickremesinghe if he was able to raise the daily wage of plantation workers and resolve their grievances. He also said the president has been successful in containing the disruptions caused by the currency crisis.

“On this May Day, we say to both the opposition leader and the president, I and my people would join hands with a leader that worked to increase [estate workers’] wages and give them [access to the Samurdhi welfare scheme] and include them in national policy,” he said. (Colombo/Dec07/2023)

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