Sri Lanka Brodcasting Corporation

Fri10202017

Last updateThu, 19 Oct 2017 8pm

Business News

The objective of the government is to make the Hambanthota port an income generating enterprise with support of a Chinese company.

Minister of Development Strategy Malik Samarawickrema says the government has to utilize correct and timely long terms strategies to liberate the country from the economic crisis. It should achieve economic development on a correct path. Accordingly the businesses and enterprises which sustain economic losses should be restructured through agreements with local and foreign entrepreneurs. Otherwise people will have to incur debt payments for losing state institutions. The country has fruitful experience of restructuring such institutions in the past. Therefore the Sri Lanka Port Authority has taken steps to convert the Hambanthota port into a joint venture with a Chinese company. A loan of over 150 billion rupees has already been taken from china to build the Hambanthota port. Though the government has to paid a large amount of money as debt installment and interest, the port does not make any profit.

The ports authority has earned an income of 32.2 billion rupees form January to October last year. 91 percent of the income was earned from the Colombo Port. However, this income had to be allocated for the maintenance of Hambanthota port and to pay debts.

The total income of the Hambanthota port during the relevant period was only 1.7 billion rupees. Therefore every citizen of the country has to pay a debt of 10,000 rupees for the Hambanthota port alone. Therefore the only strategy to salvage the Hambanthota port is to make a profitable enterprise while retaining its ownership and leasing it on a 9th year lease agreement.

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