China mulls bigger stake in Colombo port
Sri Lanka is looking at boosting China’s stake at the Colombo Port and in the process increase the Sri Lanka Ports Authority’s (SLPA) ownership in the new harbours.
Currently, discussions are underway between the SLPA and the China Merchant Holdings (CHM) on getting the latter to come in as an investor for the East Terminal under construction, Ports Minister Arjuna Ranatunga said at a media briefing held in Colombo n Friday. He explained that since the Colombo South Harbour’s revenues generated by the government amount to only 15 per cent the CHM, under the present arrangement, gets the rest of the majority stake in the terminal.
In this respect, the minister said the government was looking at increasing its stake in the South Harbour as it believes the state should have a majority share of the revenue.
The new policy of the government as per joint ventures is for the state to own 51 per cent as a result of which the East Terminal would be given out on this basis to any investor.
In a bid to turnaround the agreement already entered into with the CHM by the Rajapaksa administration, discussions are underway to work out a deal with the Chinese company.
This deal is expected to work out in favour of the government, it is believed as a result of which the SLPA would have a 51 per cent of the stake at the Colombo South Harbour and a similar stake in the East Terminal for which the CHM would get the contract to run the new terminal.
This would effectively result in the present administration also increasing the Chinese stake in the Colombo Port. Minister Ranatunga though noted that they would also look into the offers made by other interested parties as well.
The Colombo South Harbour currently is capable of catering to the mega ships due to an 18-metre draft, which would also be made available at the East Terminal as well.
In the meantime, the government has established a committee to investigate corruption and malpractices at the SLPA, the minister said at the briefing.
The committee headed by Nalin Ladduwahetty PC comprises Chartered Accountant Amitha Shaktha Amaratunga and Attorney at Law Gamini Bandara while an Engineer would also be appointed in the near future.
They are expected to investigate corruption as highlighted by some of the trade union members and other port staff that claim malpractices were carried out in the purchase of equipment and tender procedures by the former management at both the Colombo and Hambantota ports Minister Ranatunga said he would take all measures to ensure that whoever was found guilty following this investigation would be brought to book.