Gradual privatization of Eastern Terminal underway: FLSP

• The FLSP also alleged that the government is planning to privatize 14 out of the country’s 18 economic centres

By Yohan Perera   

The Front Line Socialist Party (FLSP) has alleged that the government has initiated a covert move to privatize the Eastern Terminal, following a recent cabinet decision to establish a limited liability company to manage it.   

Speaking at a press conference yesterday, FLSP Secretary for Education, Pubudu Jayagoda, claimed that the formation of Colombo Eastern Container Terminal Ltd is a strategic first step toward privatization. He warned that the shares of the newly proposed company could eventually be listed on the Colombo Stock Exchange, opening the door for private—potentially foreign—ownership.   

“The current government’s latest tactic is to create companies to manage state assets and then gradually sell off their shares through the stock market,” Jayagoda said. “This could allow foreign entities, such as the Adani Group, to gain control.”   

Jayagoda questioned the necessity of forming a separate company if the Sri Lanka Ports Authority (SLPA) is to retain full control over the terminal. “If SLPA will truly have full rights, why go through the process of establishing a new company?” he asked.   

He also accused the current administration of continuing the privatization agenda initiated under former President Ranil Wickremesinghe in 2022. “Even the former Finance Ministry Secretary, Mahinda Siriwardana, has acknowledged that the present President is implementing Wickremesinghe’s programme more efficiently,” Jayagoda added.   

In addition to concerns over the Eastern Terminal, the FLSP also alleged that the government is planning to privatize 14 out of the country’s 18 economic centres.