Challenges in the improvement of infrastructure facilities lure foreign investments should be tackled with public and private sector partnerships. This was emphasized by four experts at a panel discussion at Sri Lanka Economic Summit which concluded in Colombo on Thursday. An energy expert. Dr. Tilak Siyambalapitiya told the business conference that immediate power cuts are most unlikely, saying this was because the demand for power is decreasing.

He noted that there was substantial rainfall in the hydro catchment areas in the past few months and it will help to sustain the hydro power generation at present. He said electricity will come at a price as the country depends on thermal power to a great extent. ADB and World Bank funding is available to introduce reforms to make Ceylon Electricity Board an efficient institution. He added that 650 MW of power is being supplied by power plants operated by the private sector and therefore it has a major role to play in the restructuring process.

Chairman National Transport Commission Dr. Amal Kumarage said that more foreign investment could be attracted if the country’s transport facilities are improved to a satisfactory level with public private sector partnership. Ninety percent of the country’s road network is at a dilapidated condition and it is at a state of beyond repair. The main challenge before the authorities today is to reconstruct highways and roads and to maintain it in a proper manner, he said. He disclosed that the cost for the transport sector is Rs. 800 billion.

This is inclusive of Rs. 350 billion for vehicle imports, fuel cost of Rs. 3 billion, Rs. 75 billion for infrastructure development, and Rs. 20 billion for railways. Chairman of Sri Lanka Ports Authority Authority Saliya Wickremasuriya said that port services continued to expand benefiting from increased international trade, capacity expansion and productivity improvements. He noted that the container handling at the Colombo port has been increased to 3.7 million twenty-foot Equivalent Container Units (TEUs) and plans are underway to increase it up to 4.5 million by the year 2011. He revealed that a cargo handling village will be set up on a 21-acre block of land. The Authority has called for bids to build a new $134.3 million Southern port of Galle, next to the existing harbour. Bidding for the project, funded by an Official Development Assistance loan from the Japan Bank for International Cooperation JBIC, is only open to Japanese firms, he said.

The bidding was opened Wednesday and it will be closed on the July 10. General Manager of Sri Lanka Railways Dr. T.L Gunaruwan pointed out that the department is exploring the possibility of engaging the private sector to improve facilities for commuters. But he noted that it has no intention to give everything to the private sector as it has the capability and expertise to handle all major operations such as repairing and maintenance of rail tracks and operating of trains.

He said that the private sector could be involved in rail-based tourism, logistics management, restaurants, catering facilities and the supplying of parts to the Railways Department. He noted that train services should be improved by restructuring the entire railway industry as it could save a large quantity of fuel and prevent congestion on the roads.
(LP).