Magampura Port Management Company defaults on $ 19 m loan

Tuesday, 16 September 2025 04:46 - - {{hitsCtrl.values.hits}}

COPE reveals SLPA fuel supply unit began operations in 2014 at Hambantota Port with CPC licence
Borrows $ 24 m from local bank with SLPA guarantee
Finds $ 18.8 m outstanding while company had begun liquidation process despite two lawsuits from bank
Asserts liquidation inadequate, SLPA officials asked to expedite loan repayment
Among 33 SOEs to be liquidated for underperformance

COPE Chairman MP Dr. Nishantha Samaraweera

The Committee on Public Enterprises (COPE) has found that the Magampura Port Management Company, a fuel supply unit of the Sri Lanka Ports Authority (SLPA) at the Hambantota Port, is in the process of liquidation with nearly $ 19 million borrowed from a local bank unpaid.

The matter was taken up when COPE, chaired by MP Dr. Nishantha Samaraweera, convened on 10 September to examine the Auditor General’s reports of the SLPA for 2022 and 2023, along with its current performance.

It was revealed that the Magampura Port Management Company had commenced operations in 2014 as a fuel supplier at the Hambantota Port under a license from the Ceylon Petroleum Corporation. That year, the company had secured a loan of $ 24 million from a private bank, backed by a corporate guarantee from the Sri Lanka Ports Authority.

However, by December 2023, $ 18.82 million (Rs. 6.8 billion) remains unsettled. The bank had filed two court cases in 2019 against the company and the SLPA to recover the funds.

Officials who appeared before COPE stated that complaints relating to the matter had also been lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), and investigations are ongoing. They further noted that since June 2022, a liquidator has been appointed and liquidation proceedings of the company are in progress.

CoPE, while stressing that the SLPA had failed in its responsibility in this matter, observed that mere liquidation of the company would not be sufficient.

The committee recommended expediting the repayment process, conducting an internal inquiry, initiating disciplinary action where necessary, and strengthening oversight by the internal audit division. A comprehensive report on these measures was requested to be submitted to the committee.

The Magampura Port Management Company is one of the 33 State-owned enterprises the Government last week said it had cleared for liquidation.