CCC raises ‘collective respon sibility’ issue over ministers criticising port deal
View(s):Sri Lanka’s most powerful business chamber has raised the issue of ‘collective responsibility’ of cabinet ministers in the decisions that led to the public-private partnership (PPP) in the Hambantota port deal.
“While recognising the circumstances in which this PPP deal was required to be finalised, the Ceylon Chamber of Commerce (CCC) urges the Government to ensure that the principle of collective responsibility is respected, so as to inspire confidence in the final decision taken,” CCC said this week in a revealing media release pertaining to the controversial port deal, adding:
“This imperative is challenged when seemingly conflicting sentiments are expressed by responsible Government sources”.
While the port deal was finally approved by the Cabinet, a few weeks ago, some cabinet ministers including Justice Minister Wijeyedasa Rajapakshe publicly opposed the deal.
In fact, the same issue was raised in the Business Times’ Kussi Amma Sera column on Sunday August 13 where it was stated that the Minister by challenging the lease of the Hambantota Port to a Chinese company, is in fact complaining about a decision made by a Cabinet of which he is a member. “… a Cabinet decision, whether by a majority or not, has to be respected and publicly backed by every Minister (even though they are privately opposed to it) under the hallowed rule of ‘collective responsibility’,” the column said.
The chamber also said that it “expects the implementation of the agreement to be effected in a manner that would serve the best interests of our country”. The chamber statement said that it appreciated the steps taken to develop the Hambantota Port as a PPP as it marks an important step towards the goal of positioning Sri Lanka as a full-service maritime hub nation. In addition to the much-needed boost to the country’s foreign reserves, the reported scale and size of the investment is expected to generate meaningful FDI in port-related activities, as well as businesses around the port.
At a meeting held recently with members of the CCC’s National Agenda Committee on Logistics and Transport and other private sector stakeholders, Mahinda Samarasinghe, Minister of Ports and Shipping along with Dr.Parakrama Dissanayake, Chairman of the Sri Lanka Ports Authority (SLPA) and H. A. Wimalasoorya, Executive Director of the SLPA, briefed attendees on the concession agreement signed for the development of the Hambantota Port. The Minister elaborated on several areas that had been of concern to various stakeholders, including on how the selection of the concessionaire was done, how national interest, prevailing law and security considerations have been addressed, and how the two new companies (Hambantota International Port Group and Hambantota International Port Services) have been structured.
Observing that international rating agencies had been quick to highlight the positive effects of the transaction, industry representatives noted further that the consequent economic benefits arising from a growth in industrial activity, would create more employment opportunities in the region and also provide sizable impetus to propel growth in the maritime related services and logistics sectors around the Port of Hambantota. The chamber said it is convening a seminar for its members on the subject of the Hambantota Port development, with key officials to provide an opportunity to hear more details and seek clarifications on the obligations assumed under the agreement and the plans for implementation.