Hambantota Port yet to settle Rs. 140 million in municipal rates - Mayor

By Sanath Gamage

Colombo, Oct. 16 (Daily Mirror) - The Hambantota International Port Group (HIPG) has failed to pay nearly Rs.140 million in municipal rates (taxes) due to the Hambantota Municipal Council (HMC) since 2017, Hambantota Mayor D.A. Gamini (SJB) revealed.

Speaking at the Council’s monthly meeting, the Mayor said that during a discussion held last week with the Port management, it was disclosed that only around Rs. 1 million from the total outstanding amount had recently been credited to the Council’s account through an online transaction. The Municipal Commissioner has confirmed receiving the payment, he added.

According to the Mayor, HIPG has been assessed for Rs. 6 million per quarter in municipal rates since 2017, based on valuations made by the Department of Valuation.

When contacted, HIPG Personnel Manager Jeevan Premasara acknowledged that the company is obligated to pay the municipal rates but said payments have been delayed due to issues surrounding the transparency of the valuation process.

He explained that the Port management had requested clarification from the HMC, as there was no clear explanation on how the taxable value had been determined. However, since the valuation had been carried out by the Department of Valuation and not by the Municipal Council, the Council itself had been unable to provide a detailed response.

Premasara noted that the assessed quarterly rate, approximately Rs. 6 million, has grown into a substantial sum by 2024. While several rounds of discussions have been held, the Port has so far made only a partial payment as a goodwill gesture.

He also pointed out that the Port’s oil terminal pays less than Rs. 100,000 annually in municipal rates, and that even the Colombo Port is not subjected to such a high valuation.

“The Hambantota Port is already operating at a loss,” he said, adding that the management has requested a meeting with the Southern Province Governor seeking assistance to obtain clarity and fairness in the rate assessment process.

Premasara further observed that the Port had been operational even before 2017, during which no municipal rates had been assessed or paid. The valuation system was introduced only after 2017, and the Port management requires a clear understanding of how the current assessment was determined.