CoPE flags major delays, cost escalations and governance issues in East Container Terminal project

Tuesday, 18 November 2025 03:48 -     - {{hitsCtrl.values.hits}}

 

  • Discloses contractor claiming over Rs. 4.2 b as compensation due to entire project being delayed by 548 days 
  • Directs SLPA officials to submit comprehensive report detailing all relevant information relating to delay and compensation claims
  • Examines issues concerning management of SLPA-owned land

The Committee on Public Enterprises (CoPE) has raised serious concerns over the prolonged delays and cost implications surrounding the construction of the East Container Terminal (ECT) at the Colombo Port, during extended discussions held in Parliament recently (13) under the chairmanship of MP Dr. Nishantha Samaraweera.

The committee reconvened to examine the Auditor General’s Reports for 2022 and 2023, along with the current performance of the Sri Lanka Ports Authority (SLPA), after several matters remained unresolved during an earlier session on 10 September. 

CoPE members highlighted that the Cabinet had granted approval in November 2021 to award a Rs. 40.27 billion (Rs. 40,273 million) contract for ECT development, with agreements signed the following month.

 

The terminal was originally expected to be completed by 3 January 2025.

However, project execution has fallen significantly behind schedule. Due to multiple delays, the completion date has now been pushed back to July 2026. 

CoPE noted that the 548-day delay has resulted in the contractor claiming over Rs. 4.2 billion (Rs. 4,227 million) in compensation. The committee instructed SLPA officials to submit a comprehensive report detailing all relevant information relating to the delay and the compensation claims. SLPA representatives assured the committee that development work is now progressing rapidly and expressed confidence that the revised schedule would be met.

Beyond the ECT project, CoPE also scrutinised the SLPA’s internal expenditure and governance practices. Committee members drew attention to the Authority’s employee food expenses, noting that recommendations issued by CoPE in 2023 had not been implemented. 

SLPA officials stated that new measures were now in place to reduce costs, including the introduction of a competitive tendering process for catering services.

The committee also examined issues concerning the management of SLPA-owned land. CoPE Chair Dr. Samaraweera emphasised the need for prompt legal action where Court orders have already been issued for eviction or land recovery. SLPA officials stated that the required steps are currently being taken.

In addition, CoPE questioned the decision to rename the Seeduwa Raddolugama Sports Club as the Sri Lanka Ports Authority Sports Club and to recruit players from the club into SLPA employment. Members sought clarity on whether these actions aligned with established recruitment procedures and governance norms.

The discussions underscored persistent concerns over delays, financial management and administrative practices within the SLPA, prompting COPE to call for greater accountability and adherence to prior recommendations.

MPs Dayasiri Jayasekara, S.M. Marikkar, Sujeewa Senasinghe, M.K.M. Aslam, Dr. Pathmanathan Sathiyalingam, Dr. S. Sri Bavanandarajah, Prageeth Madhuranga, Thilina Samarakoon,

Samanmali Gunasingha, Sunil Rajapaksha, Chandima Hettiarachchi, and Dinesh Hemanta participated in this meeting.

 

COMMENTS