Sri Lanka’s Techno Park Project abandoned midway amid mismanagement
Sri Lanka’s ambitious initiative of creating a techno-entrepreneurship driven economy and reduce Sri Lanka’s reliance on agriculture in 2021 has now become a nonstarter owing to financial misappropriation, irregularities and lack of operational funding.
The National Techno Park Eco-System Development project, which will comprise modern tech infrastructure in strategic locations of Galle, Kurunegala, Digana, Nuwara Eliya and Habarana, was officially launched with the commencing of construction on the Galle Techno Park on February 17, 2022.
A Technology Park Development Company had been established under the Finance Ministry on the directions of the then Finance Minister Basil Rajapaksa to implement the project, a Ministry of Technology report revealed.
The company was listed on the Colombo Stock Exchange to raise funds and allow private investors to participate.
The parks were to include incubator and start-up spaces, 5G connectivity, innovation centers, and more.
Despite challenges regarding financial allocations from the National Budget Department, stakeholders convened to devise an effective implementation strategy for future activities.
Notably, loans totalling Rs.1.5 billion secured in 2021 for the Technology Park construction remain unresolved, with loan repayments and interest suspended since 2022. To address outstanding obligations, it was proposed utilising funds from the Irrigation Ministry and Department, with potential referral for Parliamentary approval if needed.
Construction of Techno Parks in Galle and Kurunegala began in 2021, but it had been abandoned on February 5, 2024 – the date of physical examination, a latest national audit report revealed. According to Section 14.6 of the contract agreements of the Techno Parks in Galle and Kurunegala, penalties for delay amounting to Rs. 236.36 million and Rs.416.8 million had to be paid respectively to the contractor by the Techno Park Development Company Pvt Ltd.
Accordingly, the loss sustained by the Government amounted to Rs.653.16 million. Furthermore, a sum of Rs. 18.17 million remained payable to the engineering consultant of the Galle Techno Park since April 2022, the audit report highlighted.
Another sum of Rs. 36.19 million remained payable to the engineering consultant of the Techno Park in Kurunegala as at December 31, 2023 whilst a sum of Rs. 950.6 million remained payable to the contractor of the Techno Park in Galle as at 31 March 2022.
Additionally, the company selected for construction of Techno Parks proposed for Nuwara Eliya and Kandy had presented the project proposals on November 16, 2021 and February 24, 2022, but the constructions had not been commenced even by December 31, 2023, the audit inspection observed.
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