Accumulated loss - Rs 46.7 b | Sunday Observer

Accumulated loss - Rs 46.7 b

10 December, 2017

Commenting on the Hambantota Port, Minister of Development Strategies and International Trade, Malik Samarawickrama said the Port of Hambantota has severely under-performed and recorded an accumulated loss of over Rs. 46.7 billion as at the end of 2016. Addressing Parliament, on Friday, the Minister said that it was built with little attention to its commercial viability and with little consideration of the burden it would place on the public if it is not operationalised properly and added that as a result President Sirisena and Prime Minister Wickremesinghe had identified this as a priority issue to be resolved by the Government. While the project is expected bring in an FDI inflow of US$ 1.12 billion, the Minister said that there will be an immediate positive impact on foreign inflows, as the Chinese entity is bringing in an immediate advance payment of 30 percent.

The balance is expected within six months, Minister Samarawickrama confirmed.

According to him, two new companies are also likely to invest a further US$ 500-600 million for infrastructure development.

Speaking about the challenges the Government faces, the Minister said that the government has had to grapple with the heavy overhang of debt, due to unfeasible projects that were undertaken in the past and a buildup of unproductive assets such as the Hambantota Port.

The project has been structured in such as way that it brings in much needed foreign investment, and at the same time complies with all relevant international laws, and most importantly takes into account Sri Lanka’s national security and national interests, the Minister said. 

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