Economy

Sri Lanka’s Adani-WCT terminal is a private deal without tender, not govt-to-govt: opposition

Saturday March 20, 2021 7:49 am

ECONOMYNEXT – Handing over the West Container Terminal of Sri Lanka’s Colombo port to Adani group is not a government-to-government contract but a private deal without competitive bidding as India had disclaimed all knowledge of it, opposition legislator Eran Wickramaratne said.

Sri Lanka had an official government-to-government agreement with India and Japan regarding the East Container Terminal struck by the last administration, he said.

This current administration said initially that they were going ahead with it due to geopolitical consideration but later said another terminal would be given after protests.

Sri Lanka had said that a letter of intent had been offered to India’s Adani group to develop the West Container Terminal.

“I would like to ask whether this is being give through government to government negotiations?” Wickramaratne who was a minister in told reporters in Colombo.

“No. India has said that the Indian government is not connected to this. Japan is silent. So what is this?”

Sri Lanka had told the media that the Adani investment had been approved by the Indian High Commission, however India disputed the claim.

“Our High Commission in Colombo had already conveyed to the government of Sri Lanka that their media release in so far as the reference to the approval of High Commission was confirmed is factually incorrect,” an India’s Foreign Ministry spokesman Anurag Srivastava said soon after.

“We understand that the Government of Sri Lanka has engaged directly with investors on this project.”

The investors would get an 85 percent stake in the WCT terminal compared to 49 percent planned in the ECT, which was partially built by the Sri Lanka Ports Authority.

Sri Lanka said that in addition to Adani and publicly traded John Keells Holdings, other Si Lnakan investors were being sought.

Wickramaratne said open tenders should have been called to seek investors for the WCT, since it was no longer a government-to-government deal.

“There should be an open tender called and investors should be invited,” Wickramaratne said. “There should be a lease rental or a concession fee and royalties. None of this information is known.

“This is being done as a private deal. There may be cronies (gajamuthuru) involved. We have to keep an eye out.” (Colombo/Mar19/2021)

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Tourism

Sri Lanka government to develop Arugam Bay tourism sector

Thursday September 21, 2023 3:29 pm

ECONOMYNEXT – The Arugam Bay Tourism Development Plan, which focuses on challenges to infrastructure development in the area and obstacles hindering the growth of the tourism sector, was discussed by government officials and key stakeholders yesterday (20).

Participants from heads of relevant organizations, the Police and district officers met at the Presidential Secretariat to discuss how each institution could contribute to finding solutions to these challenges, the president’s media division said in a statement.

The main tourism plan for Arugam Bay, prepared by the Urban Development Authority (UDA) was presented by chief of presidential staff, Sagala Rathnayaka.

904,318 tourists visited Sri Lanka from January to August 2023, an increase from the 719,978 tourists that arrived in the country during the whole of 2022, statistics provided by the Sri Lanka Tourism Development Authority show.
“A tourist will spend an average of 185 -195 dollars a day,” Sri Lanka Tourism Development Chairman, Priyantha Fernando, told EconomyNext.

Sri Lanka’s government aims to attract five million tourists a year, and has mooted the establishment of an Investment Infrastructure Corporation, a decision-making council and regional committees under provincial tourism boards. (Colombo/Sep21/2023)

Sri Lanka to urgently adopt new permanent tourism policy: minister

General Economy

Sri Lanka gets 19.23 mn US dollar grant from USA

Thursday September 21, 2023 3:23 pm

ECONOMYNEXT – The United States yesterday (20) announced the commitment of more than 19 million US dollars in additional funds to further the development of Sri Lanka.

The 19.23 million US dollar (6.2 billion rupees) is obligated through the Development Objective Grant Agreement between the United States Agency for International Development (USAID) and the Sri Lanka government.

“This development assistance will support economic growth and democratic governance activities and demonstrates the ongoing US commitment to its partnership with Sri Lanka and in building lasting people-to-people ties,” a statement by the Embassy of the United States of America read.

“This investment demonstrates the United States’ ongoing commitment to our partnership with Sri Lanka and our steadfast support to the people of this stunning, opportunity-filled country, as USAID Administrator Samantha Power and President Wickremesinghe discussed in New York,” said Gabriel Grau, USAID Sri Lanka and Maldives Mission Director.

“With these funds we’ll continue to work with the government of Sri Lanka to improve economic growth and democratic governance and advocate for vulnerable populations.”

USAID is an independent agency of the United States government responsible for administering civilian foreign aid and development assistance.

The United States has provided more than 2 billion US dollars (nearly 720 billion rupees) in assistance to Sri Lanka since 1956. (Colombo/Sep21/2023)

Debt Restructuring

Sri Lanka’s 2022 EPF returns falls to lowest, single digit in near two decades – CB data

Shihar Aneez

Thursday September 21, 2023 12:17 pm

By Shihar Aneez

Thursday September 21, 2023 12:17 pm

ECONOMYNEXT – The 2022 annual average return on Sri Lanka’s largest contributory pension scheme, the Employees’ Provident Fund (EPF), has fallen to its lowest in nearly two decades, Central Bank data showed.

The annual average return in the last year fell to 9.52 percent from the previous year’s 11.40 percent, a central bank response to a Right to Information (RTI) request showed.

Returns on EPF has raised concerns among contributors after the government decided to include EPF investments in the government treasury bonds under the domestic debt optimization (DDO) process.

Last year’s lower return has been recorded despite market interest rates being more than 30 percent towards the end of the year. In contrast, the fund has given a double digit return in 2020 when the market interest rates hovered in single digits.

Analysts have predicted the returns to be further low with the central bank opting for the government’s DDO option.

A central bank analysis on DDO showed the return on EPF could fall to as low as 6.79 percent if the DDO option was not chosen within the next 12 years as against 8.02 percent if opted for DDO.

Trade unions and some politically motivated fractions opposed the government move to include the EPF investments under the DDO. However, parliament approved the move early this month.

According to the data made available from 2005, the central bank, which is the custodian of the EPF, has given the highest return of 16.03 percent in 2009.

The island nation’s largest pension fund has almost 21-million member accounts including 18.3 million non-contributing accounts due to some members having multiple number of accounts.

The 3.38 trillion-rupee ($10.6 billion) worth fund as of end 2022 is managed by the central bank, including its investment decisions.

As of end 2022, the central bank has invested 3.23 trillion rupees or 95.7 percent of the total EPF in government securities, while 84.1 billion rupees has been invested in listed companies in the Colombo Stock Exchange, the central bank said quoting the EPF audited financial statement. (Colombo/September 21/2023)