President Anura Kumara Dissanayake yesterday pledged stronger safeguards for investors and greater private-sector participation in infrastructure development and economic growth, outlining proposed reforms covering ports, logistics, energy, taxation and technology.
He made the announcements at the inauguration of the Sri Lanka Economic and Investment Summit 2026, organised by The Ceylon Chamber of Commerce.
Addressing a packed business audience during a fireside chat moderated by Standard Chartered Bank Sri Lanka CEO and Ceylon Chamber Vice Chairperson Bingumal Thewarathanthri, the President stressed that investor protection, transparency, predictable regulations and infrastructure development must be supported by strong domestic businesses capable of partnering with foreign investors.
“If there are not strong local entrepreneurs and businesses, with whom can the foreign investors do businesses or joint ventures?” he asked, calling on the private sector to play a more active role in expanding the economy.
He said the Government would consider offering tax concessions to businesses investing in rural areas to generate new economic opportunities. He also indicated that existing fuel-sector agreements would be reviewed and that competitive procurement and pricing mechanisms would be introduced in selected areas.
Among the key announcements was the Government’s plan to offer the management and operating rights of the East Container Terminal (ECT) at the Port of Colombo to a private-sector partner while retaining State ownership. The terminal is currently operated by the Sri Lanka Ports Authority (SLPA).
The President said the terminal currently handles approximately 500,000 twenty-foot equivalent units (TEUs), compared with a potential annual capacity of 3.2 million TEUs once it is fully developed and optimised.
He said delays in port operations were preventing the country from making the most of its existing assets, highlighting the potential for international terminal operators and shipping lines to improve efficiency and expand capacity.
Industry reports indicate that five to six international shipping lines have expressed interest in the proposed arrangement. However, the Government has yet to identify a preferred operator or announce the terms and timeline of the initiative.
The move could alter competition among Colombo’s container terminals and affect the Port’s transshipment business, depending on whether the eventual operating structure delivers the expected improvements in capacity and efficiency.
The Government is also pursuing a major expansion of port infrastructure. The President said approximately US$1.4 billion would be required for the breakwater infrastructure supporting the proposed West Container Terminal II (WCT II).
Funding is expected to be sought from multilateral development institutions. Preliminary design work has progressed with support from the Asian Development Bank (ADB), with the final report expected by April 2027, according to the President.
WCT II is expected to add around 3.2 million TEUs in annual capacity once completed, creating further investment opportunities for terminal operators, maritime service providers and other port-related businesses.
The SLPA also plans to call a fresh tender for a logistics centre within the Port of Colombo following the resolution of a dispute involving land previously allocated to other parties, the President said. Compensation is to be paid to the previous parties before the land is released for the new tender.
The proposed development could attract investment in bonded warehousing, container freight stations, distribution, cargo consolidation and value-added logistics services.
Separately, the Government plans to establish a container examination facility in Kerawalapitiya through a public-private partnership (PPP). The President referred to a facility capable of examining approximately 150 containers, although further details on its operational capacity and implementation timeline were not provided.
The project has received Cabinet approval for a PPP-based approach and is intended to reduce congestion, improve Customs clearance and increase cargo-handling efficiency.
Fuel and bunkering sector reforms
The Government is considering reducing the existing 2.5% tax or levy affecting bunkering through Budget 2027, following representations by the Bunkering Committee, the President said.
He said the move was intended to strengthen Sri Lanka’s competitiveness as a regional bunkering hub. The Government is also considering a partnership between the Ceylon Petroleum Corporation (CPC) and private-sector operators to expand bunker-fuel storage at the JCT Oil Bank.
The President announced plans to establish 75 additional CPC filling stations and confirmed that existing agreements with Lanka IOC, Sinopec and other private fuel suppliers would be reviewed in consultation with the Attorney General.
He expressed concern that current arrangements could limit the Government’s ability to respond to international oil-price volatility and supply disruptions, particularly when private operators restrict distribution despite having stocks.
“Although in urban areas both public and private fuel stations are available, in outstations only one player is available and mostly private sheds. Limiting distribution by private players due to price while having stocks is not correct and fair,” he said.
The Government aims to strengthen its ability to ensure an uninterrupted domestic fuel supply while expecting private operators to balance commercial returns with their broader responsibilities.
“Be a competitive player. Profit and social responsibility is something that the private sector must consider,” the President said.
The proposed review comes amid wider concerns about the flexibility of existing fuel-market arrangements and the State’s capacity to maintain supplies during periods of disruption.
Renewable energy and competitive pricing
The President said renewable energy development would continue in partnership with the private sector, with four grid lines expected to be opened for private-sector participation.
Questioning the reliance on fixed feed-in tariffs, which are determined by the Public Utilities Commission of Sri Lanka (PUCSL), he argued that competitive tendering could help reduce costs.
He also identified limited land availability as a constraint on solar power development and suggested greater emphasis on floating solar parks, citing the recent Ibbankatuwa project as an example.
The proposed approach is intended to expand renewable energy capacity while addressing land constraints and improving cost competitiveness.
Relief measures and economic resilience
The President said the Government had secured uninterrupted supplies of oil, gas and fuel amid escalating tensions in the Middle East, while cautioning that the future course of the conflict remained uncertain.
He said the Government had allocated Rs. 60 billion in fuel concessions to cushion the economy against another shock following the economic crisis and Cyclone Ditwah. A further Rs. 41 billion had been allocated to provide relief to targeted communities.
Identifying eligible beneficiaries remained a challenge because of gaps in available data, he said, adding that Mobitel and Dialog were discussing possible solutions.
Skills development and technology
The President identified workforce skills and productivity as critical factors in attracting investment, particularly in the information and communications technology (ICT) sector, where industry requirements have evolved rapidly.
He said the Government planned to sign an agreement with Singapore the following week to establish a training centre on Wijerama Mawatha, focusing on ICT and artificial intelligence (AI). The proposal was also expected to be submitted for Cabinet approval the following week.
Sri Lanka needed to strengthen its IT skills base to meet the demands of a changing global market, he said, while highlighting the need to improve salary structures in the public sector and specialised fields to attract and retain expertise.
Source: Hiru News
