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Experts discuss SL’s policy towards building future port infrastructure

17 Feb 2021

  • Policy backsliding derails country’s aspirations to become maritime hub

  Shippers’ Academy Colombo (SAC) Chief Executive Officer (CEO) Rohan Masakorala said that Sri Lanka is losing out to regional competitors because of policy inconsistency. He said this at the panel discussion hosted by the Advocata Institute on surrounding policy issues on 12 February at the BMICH. The event, which featured a high-profile list of panellists, discussed various policy implications for port development in Sri Lanka.  Masakorala expressed a strong concern that Sri Lanka is losing out to regional competition for transshipment due to a lack of policy consistency. The recent cancellation of the trilateral arrangement for the development of the East Container Terminal (ECT) is reflective of this trend, according to him. “Sri Lanka will only be able to protect the competitiveness of the Port of Colombo by allowing global network operators to come in with their networks,” he added. According to Masakorala, providing certainty for investors by having a national consensus on these important policies is the best incentive to attract much-needed foreign direct investment (FDI). Institute for National Security Studies Founding Director General Asanga Abeyagoonasekera also highlighted the importance of such consistency at the strategic level, when it comes to managing bilateral relations. Another important takeaway from Masakorala’s deliberations was that Sri Lanka should adopt the landlord model for port management as opposed to the hybrid model. Furthermore, he acknowledged that the success of the Port of Singapore is a byproduct of following the landlord model. Moreover, panellist State Minister of Urban Development, Coast Conservation, Waste Disposal, and Community Cleanliness Dr. Nalaka Godahewa elaborated on the Government’s blueprint for port development. He highlighted that the Government is determined to maintain the existing status quo of ports being managed by the Sri Lanka Ports Authority (SLPA) while making terminal operations available for the development of the private sector and foreign investment. Abeyagoonasekera further expounded on the geopolitical implications for Sri Lanka on the port development front. Highlighting that even countries such as Israel, which has close links with the US, have managed to bring in investments from China to their ports, he called for wise strategic choices and the proper management of Sri Lanka’s relationship with India. The discussion was moderated by Advocata Institute Chief Operating Officer (COO) Dhananath Fernando and Advocata Institute Researcher Sathya Karunarathne.


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