Sri Lanka may be sliding into a trap of over-reliance on public financing for infrastructure development. The only way out is to shift from loans to PPPs, argues the NAC on Infrastructure.
Sri Lanka has much to learn from international success stories, when implementing PPPs. One such example is the Renewable Energy Independent Power Producer Procurement Plan (REIPPPP) in South Africa. In just a few years, the country secured over 6,000 MW of power and connected 37 IPPs to the grid.
Under Thilan Wijesinghe’s stewardship, Sri Lanka secured multiple PPP deals in infrastructure. We spoke to him to understand the factors that contributed to that success.
A widely popular mechanism for funding infrastructure needs in developing counties, PPPs have helped reduce government debt, achieve cost reductions, drive innovation and enabled the development of the private sector.
There is an emerging debate in Sri Lanka now on whether the time is right for REITs in the country, especially as property development continues apace and land prices appreciate rapidly. Yet, to foster a conducive climate for REITs in Sri Lanka, there are some key areas that must tackled.
Exactly a year ago, in a pioneering move for a Sri Lankan business grouping, we launched a set of premier thought-leadership groups to represent the country’s foremost insights on key strategic economic themes.
Last year the Government called for Expressions of Interest (EOI) for operating the East Container Terminal at the Colombo Port. But since then, there have been concerns on potential revisions to the eligibility criteria. The NACs have urged the adoption of a credible and predictable process for PPP projects of this nature, in order to instill confidence among investors.