Sri Lankan government explores foreign and local private-public-partnerships for infrastructure projects
A State Minister of the government of Sri Lanka has reportedly stated that the government will explore foreign and local private-public-partnerships (PPPs) for infrastructure projects.
“The infrastructure projects such as Norochcholai coal power plant and Southern Expressway have already made money than anticipated. We need to turn around the underperforming State-Owned enterprises (SOEs) to be able to market those as viable PPP projects to international investors. They can partner to build roads, power plants, and other infrastructure development projects by way of build–operate–transfer (BOT) basis,” Sri Lanka’s Investment Promotion State Minister Keheliya Rambukwella has told the media.
According to Rambukwella, Sri Lanka is looking to structure build operate transfer (BOT) style agreements to bring foreign investments into expressways and other infrastructure and avoid getting into more debt.
“We are seriously looking at structuring BOT projects for infrastructure,” the Minister has said, adding, “Instead of loans it is time to look at foreign investment. I think we have taken enough loans.”
The Minister has further noted that highways were a key candidate for BOT style structures.
Sri Lanka’s Southern Expressway, a government owned toll road, was generating higher than expected cash flows, which can be showcased to foreign investors as the example of the potential, toll roads had.
Minister Rambukwella has also noted that the power sector needed investments and that education was another key focus area of the new administration.
He added that there were plans to attract top foreign universities to the country.
OSL take:
The priority status given by the government of Sri Lanka to foreign investments has resulted in the introduction of many incentives to the foreign business/investor looking at doing business with Sri Lanka. Sri Lanka is fast becoming a business hub in South Asia. The island’s geographical positioning and the ease of doing business environment in the country along with the many trade agreements as well as trade concessions enjoyed by the country have helped boost Sri Lanka’s image among the foreign business community.
| Article Code : | VBS/AT/06122019/Z_3 |