The contractor for the Eastern Container Terminal (ECT) development at the Colombo Port has claimed Rs. 4,227 million in compensation due to significant delays in the project, the Committee on Public Enterprises (COPE) revealed this week.
These findings emerged during extensive discussions at the latest COPE meeting, chaired by Committee Chairman Nishantha Samaraweera, where the committee continued its review of the Auditor General’s Reports for 2022 and 2023, as well as the current performance of the Sri Lanka Ports Authority (SLPA).
The committee recalled that in November 2021, the Cabinet had approved a Rs. 40,273 million contract for the ECT development. According to the agreements signed in December 2021, construction was originally scheduled for completion by January 3, 2025.
However, due to multiple delays, the project timeline has been extended, with the new estimated completion date set for July 2026. As a result of the 548-day delay, the contractor has requested Rs. 4.2 billion in compensation.
COPE has instructed officials to submit a comprehensive report containing all relevant details.
SLPA officials informed the committee that construction work has now accelerated and that efforts are being made to complete the project promptly.
During the meeting, the committee also examined other issues highlighted in the Auditor General’s report, including food expenses for SLPA employees, noting that recommendations made by COPE in 2023 had not been fully implemented. Officials said measures have been introduced to reduce costs, including a competitive tendering process.
Additionally, the COPE Chairman stressed the need to enforce eviction orders related to the repossession of SLPA-owned land, emphasizing that further legal action should be taken when court instructions are disregarded. Officials confirmed that necessary steps are already underway.
