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Monday June 3rd, 2024

China delayed loan to Sri Lanka expressway for 4.5 years: ex-highways minister

ECONOMYNEXT – China delayed a loan for an expressway to Kandy for 4.5 years though the building contract was awarded to a Chinese contractor was re-confirmed during his time, former Sri Lanka Highways Minister Lakshman Kiriella said.

Sri Lanka’s central expressway which runs from Colombo to Kandy and is then expected to run to Jaffna is being built in three segments.

“We started the expressway from Kadawatha. The project had three stages. Kadawatha to Meerigama, Meerigama – Kurunegala and Pothuhera – Galagedara,” Kiriella told parliament during the highways ministry vote.

“In 2014, the government of Mahinda Rajapaksa had decided to award the first segment of the project to a Chinese company called MCC (China Metallurgical Group Corporation). There was an agreement in 2014. So we gave it to MCC.”

“But the Chinese government did not give money.

“They delayed it intentionally (Hithar matharmer parakk-ku keruwar). For four and a half year the Chinese government did not give the money,” he claimed.

Kiriella served in the Sirisena-Wickremesinghe administration which suspended the Colombo Port City Project. Sri Lanka then had to allow the Chinese firm to reclaim more land as compensation, reports said.

The administration also had a dispute with MCC over the construction cost of the outer circle highway in the capital Colombo.

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China however gave an 800 million dollar budget support loan to Sri Lanka during the last administration.

Kiriella said a second segment of the Central Expressway was given to local construction companies to be built with domestic financing.

“Then the second segment Meerigama to Kurunegala was given to local constructors,” he said. “And we built 37 kilometers out of the 40 kilometers. Only 3 kilometers remain to build. This government is still struggling to build that part.”

He said it was the first time domestic contractors had been allowed to build expressways.

Kiriella said the third section was supposed to be built with financing from Japan by Taisei, but it ran into controversy.

“In 2016 we were planning to start the constructions prior to Kandy Perahera. We gave the contact to the Company called Taisei,” Kiriella said.

However, with due loan repayments from the Sri Lanka the Taisei Company withdraw from keeping the Bid Bond to take the contract.

“Normally 10 percent should be placed as the bid bond but this Taisei company did not do that.” Kiriella said.

“They said the Sri Lankan government already owed them money and cannot place any bid bonds. This was in 2016.”

“Then several controversies took place between our party leaders regarding this and in due time the government changed.”

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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