Sri Lanka Brief
NewsRajapaksa White Elephants Continue to Incur Huge Losses

Rajapaksa White Elephants Continue to Incur Huge Losses

by

Image:  Magam Ruhunupura International Conference Hall (MRICH) has been used only two or 3 days since November 2013 and cost over 200 million rupees just to maintain it.

Mega building projects constructed under Rajapaksa presidency with Chinese loans by Chinese companies continue to incur huge losses to the Sri Lanka government just to maintain them reports Colombo media. The information  on these losses has been provided by the relevant ministries.

Sri Lanka’s Hambantota Port, built by a Chinese firm with a loan from China during the ousted Mahinda Rajapaksa regime, has lost Rs18.8 billion ($147 million) a year, reports Economy Next  quoting a  Finance Ministry document. Cumulative losses have been Rs37.2 billion ($253 million).

The government has so far spent Rs175 billion on the project ($1.19 billion), and taxpayers have to service loans taken from China to build it. It was a design-build-transfer project, reports further says.

Another white elephant Maththala Airport, named after Mahinda Rajapaksa, loses Rs5.9 billion a year, says the same document .

The government has spent Rs27.5 billion ($187 million), with loans taken from China in relation to th eMaththala Airport .  Cumulative losses are Rs13.6 billion. (Colombo/Nov11/2016)

Magam Ruhunupura International Conference Hall (MRICH) was constructed by the Urban Development Authority and the Korean International Corporation at a cost of 15.3 million US dollars. So far it has only been used few days according to the megalopolis Minister Ranawaka.

Just to maintain the conference hall Sri Lanka’s Urban Development Authority  spends 17 million rupees monthly  reports lankabusinessonline. 

Annual loss to the UDA is more than 200 million rupees.

The conference hall located at Siribopura, Hambantota was opened by ex-President Mahinda Rajapaksa in November, 2013.

 

Back to Top