News

Cash strapped Sri Lanka government is receiving assistance from the Netherlands to implement its ambitious rural infrastructure development programme of building roads and bridges in remote villages. The government has allocated additional LKR 20, 000 million to commence construction on rural roads under the 100,000 km programme and LKR 7, 000 million to build 10,000 rural bridges connecting the villages to the external environment.

President Gotabaya Rajapaksa has assigned officials to complete the project for the construction of 100,000 km of rural roads and connect them with the main road network by 2024.

The President stated that new bridges will be built replacing hanging, wooden plank and small bridges. The construction of 8000 km of roads has commenced and 400km of it has already been completed in the last few months.

In the wake of the government’s new rural bridges programme, the Finance Ministry has received a pledge from the Rabobank of Netherlands to provide 52.1 million euro financial assistance to construct approximately 250 steel bridges island wide especially in the rural areas.

Finance and Economic Affairs Ministry Secretary, S. R. Attygalle has reportedly signed this Credit Facility Agreement at the Ministry of Finance.

The Sri Lankan Government has accorded high priority for connectivity improvement within the country, with a view to providing full benefits to the remote villages from mainstream development activities in the country, the Ministry has stated.

Accordingly, the Government is planning to construct 10,000 bridges in rural areas to establish connectivity for transportation.

A large number of lagging villages will be connected with transport facilities through this project, which will in turn facilitate easy access to market, education and healthcare facilities to villagers.

The announcement of the agreement signed between Sri Lanka’s Finance Ministry and the Rabobank of the Netherlands for a project to construct steel bridges indicates the opening up of a business opportunity in the country’s ongoing development programme.

The Sri Lankan government is engaged in the development of the rural road network and connectivity. Hence, there are many projects in the roads and highways sector in Sri Lanka with most programmes having secured foreign funding lines.

Therefore, foreign businesses could seriously explore business opportunities in Sri Lanka’s roads and highways sector.

The head of the National Operation Centre for Prevention of COVID-19 Outbreak (NOCPCO), General Shavendra Silva has requested private hospitals to look into implementing a common regulatory mechanism for conduct of antigen and PCR tests.

The Lanka Coal Company says they were following policies set by the previous Government in 2015 when it was decided that half of the 2.25 million metric tonnes required for the Lakvijeya power plant should be purchased through a term tender while the rest procured through spot tenders.

Accordingly, the company said it had taken steps to purchase 1.2 million metric tonnes from a term tender awarded on November 08, while the remainder was to be bought via six spot tenders.

Lanka Coal said five of those spot tenders have already been awarded and four of them were given to the lowest bidder.

Only two tenders had to be rejected, the statement said. The first, after the bidder wished to change the port the coal was being shipped from, and the second, after it was found that the bidder’s price was USD 7 higher than global prices.

“The Lanka Coal Company follows internationally accepted indices when evaluating prices of tenders, and during the last few months, coal was purchased for prices as low as USD 53.94, USD 58.11 and USD 59.50.

It is an accepted fact that coal prices are at their highest during December and January, resulting in annual purchases made during this time being customarily higher,” the statement said.

The company said in January 2018, coal was purchased at USD 100.35 per metric tonnes and in 2019, for USD 91.40 per metric tonne, which was higher than the USD 90.20 per metric tonne in January 2021.

The Memorandum of Corporation was signed between the Sri Lankan, Indian and Japanese Governments to lease out the terminal to a Terminal Operating Company.

The Terminal Operations Company (TOC) was set up with the “exclusive and explicit purpose of providing the equipment and systems necessary for the development of the ECT and managing the ECT”.

The development and operations of the ECT was to be carried out over two phases. Phase “A” was to consist of the operation of the existing 600 meter quay length with the necessary terminal handling equipment. Funding for this phase was to be provided via a US $190 million loan from JICA.

Furthermore, the Governments of Sri Lanka and Japan were undergoing negotiations to sign Exchange of Notes under highly concessionary conditions. Accordingly the loan provided by JICA would be done so at an interest rate of 0.1% for a period of 40 years, with a grace period of 12 years. Japan has continually funded the development of the Colombo Port since 1977.

The construction of phase “B” with a loan obtained by the Sri Lankan Government would ensure that ownership of the East Container Terminal would be retained. In the case of an investment in the terminal by other parties, the Government does not have exclusive ownership.

Other details were to be negotiated in accordance with clause 3 & 5 as stipulated in Memorandum of Corporation, by a Joint Working Group comprising representatives of the three Governments. None of these matters had been finalized.

The decision of the management of the TOC had to be taken jointly by the three Governments.

At the time of President Gotabaya Rajapaksa assuming office, India had not formally informed us of the company which they would nominate. It was indicated that it would be the Adani Group.

The agreement negotiated by the UNP while in Government was one that was beneficial and safeguarded the Colombo Port as the leading container port in South Asia.

President Gotabaya Rajapaksa has appointed a 3-member panel to probe the findings of the previous commissions appointed by the state to investigate human rights abuses committed during the last phase of the armed conflict with the LTTE in 2009.

Sri Lankans have been under threat of several types of financial frauds and scams being operated through social media, Internet-based applications and mobile payment applications, the Central Bank warned.  Most of these scams are conducted through web or mobile app based easy loan schemes that attract the public, the Central Bank revealed in a special announcement today (22).  

During such a loan application evaluation process, the fraudsters entice the public to share confidential personal customer information/data.

This data included Debit/Credit Card numbers, personal identification numbers (PINs), card verification digits commonly found at the back of the card and referred to as CVV, CVC or CVS numbers, card expiry date, transaction verification information such as One-Time-Passwords (OTPs)

These scammers are also requesting internet users for their internet banking – username, password, OTP etc.

People have been strongly advised to exercise due diligence and care to avoid becoming victims of the scams operating in the guise of money lending businesses and obtain full information of the financial transaction and the lending party before entering into an agreement and conduct financial transactions with regulated/authorised entities. They will have to be extremely vigilant when dealing with easy/instant loan schemes and  avoid entering into agreements that it is difficult to fully understand the implications of the contents of the terms and conditions.

The should also be cautious when applying to easy/instant loan schemes with characteristics such as attractive slogans which lure customers in such as zero interest for the first loan

The scammers are offering extremely high interest rates even though the initial interest rates may be low.

Further, the Central Bank wishes to request the public to obtain real-time notification services, such as SMS alerts, from their banks or non-bank financial institutions, so that they would become aware of any fraudulent activity that takes place using their accounts, instantly.

Ven Medagama Dhammananda Thero said that Ports and Airports are valuable resources to a country and as such, Sri Lanka has to re-think about the ways in which it can manage these resources and declare our authority on it and go forward.

He said that when the Maha Sangha backed the present government at the presidential and parliamentary elections, they had their complete faith in the President that he will carry out the country’s affairs while safeguarding the country’s national resources.

Civic groups and trade unions have heavily criticized the government’s efforts to handover a 49% stake of the Colombo Port’s ECT to India’s Adani Group.

“We believe that the President is a person who loves the country,” Ven. Prof. Medagoda Abhayatissa Thero. But since he was elected to power, various entities have been trying to manipulate him”.

Ven. Magalkande Sudantha Thero, the secretary of the Sinhala Ravaya Organization that supported the presidential bid of Gotabaya Rajapaksa, noted that the government that pledged to refrain from allowing the country’s resources to be sold to foreign entities before coming into power, is acting in a contrary manner.

Meanwhile, Ven Elle Gunawansa Thero said that they will come forward to protect the ECT just as the Sacred Tooth Relic protects the Dalada Maligawa.