Middle East conflict puts global spotlight on Colombo Port, World Bank tells government

June 18 (Daily Mirror) - The ongoing conflict in the Middle East has placed the Colombo Port under increased global attention, prompting the World Bank to urge the Sri Lankan government to exercise great care in its future development and management, during discussions with Civil Aviation and Energy Minister Anura Karunathilake at the Ministry premises.

The observation was made by a World Bank delegation led by Country Manager Gevorg Sargsyan, who met the Minister along with senior ministry officials to discuss the future development of the Colombo Port, including new financing models and greater private sector participation.

During the meeting, Sargsyan sought an update on the government's plans for the port and noted that the World Bank Group and the Asian Development Bank (ADB) are jointly conducting a study on the development of the Colombo Port's infrastructure.

Responding to the delegation, the Minister Karunathilake said the government is currently evaluating financing proposals and financial models submitted by the World Bank Group. He added that the Ministry of Finance and the Treasury would also play a key role in reviewing and approving the proposals.

The discussions also focused on plans to develop the Eastern Container Terminal (ECT) as a separate entity. The Minister said the government has sought the Attorney General's advice on the proposed restructuring and stressed the need to establish a model that offers greater commercial flexibility and operational independence than a traditional state-owned enterprise, while ensuring the support of trade unions.

World Bank representatives said they were prepared to share international experiences on introducing private sector participation in ports, particularly on engaging with trade unions and implementing employee-friendly reforms that have improved incomes and staff welfare in other countries.

The delegation also cited the development of Bangladesh's Chittagong Port as a successful example, explaining how the involvement of international port operators from Singapore, Dubai and Jeddah had helped transform the port into a more efficient and competitive maritime hub.

Attention was also drawn to the future restructuring of SriLankan Airlines and the wider aviation sector. The Minister said discussions on these reforms are being carried out with the International Finance Corporation (IFC), with a view to strengthening the country's aviation industry alongside port sector development.