The loan has not been repaid with the money leased from the Hambantota port

It was revealed at the Committee on Public Enterprises (COPE) that the loans taken for the construction of the Hambantota Port for 99 years have not been repaid and the money has been used for other purposes.

Accordingly, it was revealed that the relevant loans and interest have been paid by the General Treasury but the foreign loans taken for the construction of the port have not been recorded in any government account so far.

Accordingly, it was revealed that the Ports Authority had given the loan amount to the General Treasury as well as the amount received during the 99 year lease of the port in 2017 and the loan taken for the construction of the port had been used by the Treasury for government expenditure as the loan interest rate was low.

As at November 30, 2017, the balance of Rs. 1,47,746 million loan and interest balance and Rs. It was also revealed that the Ports Authority has removed the foreign exchange loss of Rs. 31,545 million from its financial statements without the approval of the General Treasury or the Cabinet.

These facts were revealed when the COPE Committee chaired by Prof. Charitha Herath met June 22 to examine the 2019-2020 Auditor General's Reports and Current Performance of the Sri Lanka Ports Authority.

Accordingly, the Ministry of Finance has discussed the matter with the Ports Authority and the Chairman of COPE has recommended to the Secretary to the Ministry of Ports and Civil Aviation to take the necessary steps to include this in the publications and report to the COPE Committee within a month.

Magampura Port Management Services Pvt. It was revealed that the bank had taken a loan of US $ 24 million and had filed a lawsuit against the company for failing to repay the loan.

Discussions also focused on the non-payment of dividends and surplus funds to the Consolidated Fund under the Finance Act and the Ceylon Ports Authority Act. From 2016 to 2021, the Authority spent Rs. 69,686 million but the treasury has received only Rs. 600 million. The Chairman of the Ports Authority said that paying off certain loan installments would also cost a lot of money for maintenance. While appreciating the role of the Ports Authority as a for-profit entity, the COPE Chairman also recommended that action be taken to ensure that the Treasury receives a return of 8% as per the Ports Act.

Delays in the commencement of work to purchase cranes for the operation of the Port Eastern Container Terminal were also discussed. The Chairman of the Ports Authority said that the purchase is scheduled to be completed by 2024. The COPE Committee also stressed the need to expedite the work and expand the operational use of the terminal for commercial purposes. The need for a strong performance of the Internal Audit Division was also emphasized in the Committee. It also recommended that the audit plan for 2022 be sent to the COPE Committee.