BIZ

Irrigation Ministry terminates contract with Chinese joint venture

Published

2 years ago

December 11, 2022

editor

The Sunday Leader newspaper has reported that the Ministry of Irrigation has suspended a contract that was given to a Chinese joint venture, which was supported by the Asian Development Bank.

It further states that the multi-billion rupee project was suspended after the project showed less than three percent progress in the last 18 months.

The news report further states:

The Rs 10.7bn initiative to build the North Western Province’s two largest reservoirs called Mahakithula and Mahakirula is now set to be further delayed as the ADB has said it cannot release funds for at least three years in view of Sri Lanka’s debt default.

The project was awarded to a joint venture between China CAMC Engineering Co. Ltd. (CAMCE) and Qingdao Municipal Construction Group Co. The contract falls under the ADB’s Mahaweli Water Security Investment Programme’s North Western Province Canal Project (NWPCP). The start date was March 31, 2021, and it was due to be completed in two years.

As early as November last year, however, officials had drafted termination letters as work was only inching forward. The companies bought time and eventually also cited the fuel shortages that started in March 2022.

A project report published on the ADB website this month states that physical progress was recorded as 2.4 percent by the end of June this year when it was expected to have been 45.4 percent.

“Work has been stopped by the contractor and physical progress has dropped,” it documents. “The main reasons for the slow progress of the contractor include delays in mobilising of contractor’s staff and equipment, delays in submitting the contractor’s deliverables, delays in carrying out site establishment activities and preparatory works, fuel shortage, and the broad incompetence of the contractor’s management team and senior engineering personnel.”

It was decided at a meeting between Treasury and Irrigation Ministry officials on Friday that termination notices will be served on the joint venture. It is likely that costs will be recovered from the bid bonds, authoritative sources said.

The objective of the NWPCP is to supply water from the Mahaweli River to areas experiencing scarcity through reservoirs and canals. Other phases of the project are continuing.

For instance, NEM Construction (Pvt) Ltd has made full physical progress in improving the Wemedilla left bank main canal up to Nabadagahawatta and in building a new sluice and tail canal, the ADB report indicates. The project cost is around Rs 926mn.

China State Engineering Corporation Ltd is implementing the Rs 7.2bn construction of the main canal from Nebadagahawatta to Mahakithula reservoir inlet tunnel.

“Key construction work and the progress achieved up to June 2022 includes canal construction, concreting and backfilling (73.80%), tunnel works (61%), canal structures (43.3%), and construction of transitions (28%),” the report states.

BIZ

Lanka Sathosa slashes prices of several essential goods

Published

2 days ago

January 22, 2025

editor

Lanka Sathosa has reduced the prices of several essential goods, effective from today (Jan. 22).

As per the instructions of the Ministry of Trade, Commerce, Food Security, the following price reductions are now in effect at all Lanka Sathosa outlets islandwide:

White sugar: Reduced by Rs. 2 (New price Rs. 240 per kg.)
Brown sugar: Reduced by Rs. 40 (New price Rs. 300 per kg.)
Imported potatoes: Reduced by Rs. 30 (New price Rs. 180 per kg.)
Red peas: Reduced by Rs. 30 (New price Rs. 765 per kg.)
Sprats: Reduced by Rs. 20 (New price Rs. 940 per kg.)
Dried chillies: Reduced by Rs. 15 (New price Rs. 830 per kg.)
Basmati rice: Reduced by Rs. 10 (New price Rs. 645 per kg.)
Imported big onions: Reduced by Rs. 10 (New price Rs. 230 per kg.)
Lentils: Reduced by Rs. 2 (New price Rs. 288 per kg.)
Local cashew nuts: Reduced by Rs. 100 (New price Rs. 995 per kg.)

BIZ

Ceylon Chamber seeks approval to import 200mn. coconuts

Published

2 days ago

January 22, 2025

editor

The Ceylon Chamber of Coconut Industries has urged the government for permission to import 200 million coconuts with the next few months.

President of the Ceylon Chamber of Coconut Industries Jayantha Samarakoon said that the major reason for the current coconut shortage is the spike in fertilizer prices.

Speaking at a media briefing held at the National Chamber of Commerce Auditorium yesterday (21), he mentioned that the coconut imports are essential at this time to counter a severe shortage that threatens both domestic supply and export revenue.

Samarakoon attributed the coconut shortfall to skyrocketing fertilizer prices, which have discouraged growers from adequately nourishing coconut crops. He warned that if coconut stocks needed for the coconut-based export industry are not imported immediately, Sri Lanka could lose approximately USD 1 billion in revenue.

He further highlighted that the country’s monthly coconut demand stands at 250 million nuts, of which 150 million are consumed domestically while 100 million are utilized by the industrial sector. However, production has failed to keep pace.

Sri Lanka’s annual coconut yield, which previously averaged 3 billion nuts, dropped to 2.68 billion nuts last year. The Coconut Research Institute has forecast a further decline this year, with production estimated to fall to between 2.4 and 2.6 billion nuts. The institute also predicts a shortfall of 200 million coconuts between January and April 2025, exacerbating the crisis.

In response, the Chamber has proposed importing alternative coconut products such as coconut milk, coconut kernel, dried coconut kernel, or peeled coconuts to bridge the deficit.

Additionally, Samarakoon noted that a steep increase in fertilizer costs—from Rs. 1,500 to Rs. 12,000 per 50 kg bag—has resulted in reducing the growers using fertilizer to less than 10%, further worsening the production slump.

The Chamber has requested that the government provide fertilizer at a subsidized price of Rs. 4,000 per bag and expressed optimism that the upcoming budget will address this issue.

The Chamber also urged the government to introduce subsidies for water supply and soil conservation, which are critical to sustaining coconut cultivation.

(adaderana.lk)

(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

BIZ

CBSL warns of 21 companies conducting pyramid schemes

Published

4 days ago

January 20, 2025

editor

Central Bank of Sri Lanka (CBSL) has conducted investigations and determined 21 companies as those that have engaged in pyramid schemes prohibited under Section 83 (C) of the Banking Act, No. 30 of 1988 as amended.

The companies are as follows :

press_20250120_notice_to_general_public_on_prohibited_pyramid_schemes_e Download