A Cabinet paper seeking approval for a billion dollar steel manufacturing and export plant in Trincomalee will presented to Cabinet soon.Development Strategies and International Trade Minister Malik Samarawickrama said he anticipated Cabinet approval for this project.
Moving the order under the Strategic Development Projects Act in Parliament yesterday, Minister Malik Samarawickrama said the Board of Investment had identified a project by Waterfront Properties for a mixed development project at Glennie Street at an initial investment of US$ 650 million in phase one and another US$ 100 million in phase two.
“This project has commenced and around US$ 340 million has already been invested in the project. Initially, they had been given 60 months from the date of the principal agreement dated July 11, 2013 for this company to commence commercial operations. However, although the project has commenced construction activities and successfully completed the entire piling work, basement work and approximately 50% of the concrete work, there have been some delays mainly due to the piling work done due to the rock and soil conditions of the site. The excavation work was delayed unexpectedly due to the heavy rains during 2014 and 2015 and faced difficulties during basement excavations as the site had to be protected for seepage of the Beira Lake into the site. Several pits were also flooded for over eight months.”
He said they have now requested for an extension of the commencement date of operations from 60 months to 92 months. “I had submitted a Cabinet memo on July 19, 2018 requesting for this extension and it was approved on July 31. The Cabinet Order was also published on August 24 2018. I think this is a very reasonable request and I move that this be approved.” Due to the terrorist activities on April 21 and the subsequent mob violence on May 13, the Minister noted that it will adversely affect the country’s economy, particularly the tourism sector.
He said that the Tourism Minister, Finance Minister and the government are in a process of implementing a relief programme for those who were affected, particularly in the tourism sector and it will be announced within the next few days. As far as exports are concerned, he expressed confidence that the targets set by the government could be achieved in 2019. “This is mainly due to the various programmes we have undertaken such as the National Exports Strategy, the 2000 Exporters Programme and the Enterprise Sri Lanka programme.”We will achieve these targets due to the untiring efforts of our exporters and our entrepreneurs” he said. However, he said as far as the investments are concerned, they would not be able to achieve the targets set. “Both the local and foreign investors have been thoroughly shaken up by what had taken place in the country. But he noted that the security forces had successfully brought the situation under control. We are assured that this terrorist unit could be completely eliminated within a month or two. However, it is up to us to ensure that this kind of mob violence is not repeated in the future. This certainly had a damaging effect,” he noted.
Talking about the new projects scheduled to commence, Samarawickreme said some of the approvals granted, particularly for the oil refinery and cement plant in Hambantota are continuing with the work. “The investors have told us that they will ensure that the project is implemented.”
He also said that as politicians the government cannot evade responsibility for what happened in the country. “We have to take the blame in some form or the other for we are responsible for what happened. Currently, the people of this country detest all politicians, irrespective of whether they are in government or in the opposition. So, what we do from now on will determine how we can rebuild the country. Let us get together and ensure that there is no more room for terrorism, for mob violence and let us not interfere in the judicial process or with the enforcement of law. The future of our country will depend on the actions that we take together at this crucial juncture,’ he said, appealing to all to get together and rebuild the confidence of our country so that our people can have a better future.