Once showcased as a landmark of southern development, the Magam Ruhunupura International Conference Hall (MRICH) in Hambantota today stands as a costly reminder of poor planning, weak oversight, and underutilised infrastructure. Despite massive public and donor investment, the facility continues to drain government resources, yielding little to no economic benefit.
The project’s main auditorium was financed by the Korea International Cooperation Agency (KOICA) at a cost of USD 6.4 million (approximately Rs. 851.2 million) under the Hambantota Development Project, while the Sri Lankan government added another Rs. 3.83 million for ancillary construction.
Later reporting placed the total infrastructure investment at around Rs. 3,868 million, underscoring the vast sums of money tied to this unproductive asset.
Operationally, the centre’s performance has been abysmal. Between 2017 and 2023, the managing authority spent Rs. 110.53 million on maintenance and operations but generated only Rs. 20.63 million in revenue an operational loss exceeding Rs. 89.9 million.
In other words, for every five rupees spent on upkeep, the facility earned barely one. Combined with the colossal capital outlay, the Magam Ruhunupura complex represents a massive fiscal burden with no measurable economic return.
A targeted review of the Urban Development Authority (UDA) and Hambantota District Secretariat records revealed that no audited financial statements for MRICH for 2024 or 2025 have been published.
The Auditor General’s Department has referenced the project in several performance reviews of UDA operations, but there remains no standalone account detailing its financial performance over the past two years. This lack of transparency highlights serious gaps in accountability and financial management.
Officials acknowledge that attempts to activate the venue through public-private partnerships and integration into the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector have failed.
Today, the centre hosts only a handful of government or local events, generating negligible returns while the state continues to fund utilities, staffing, and maintenance. According to ministry and tourism sector sources, the facility remains “chronically underutilised,” with upkeep costs far outweighing revenue.
The absence of audited accounts, coupled with years of financial losses, raises an urgent need for corrective action.
The government should immediately publish the MRICH financial statements for 2024 and 2025 to restore transparency and public confidence. Furthermore, a forensic and performance audit must be commissioned to reconcile total capital expenditure, operational costs, and event income from 2017 to 2025, identifying where inefficiencies or mismanagement occurred.
Most importantly, authorities must pursue a commercial rescue plan either by granting the property on a long-term private concession, integrating it into Sri Lanka’s national MICE tourism strategy through the Convention Bureau, or repurposing the venue for viable economic activity.Without such decisive measures, the Magam Ruhunupura International Conference Hall will remain an expensive monument to mismanagement, consuming millions each year while contributing nothing to the economy it was meant to uplift.
https://www.nsa.lk/
Leave your comments
Login to post a comment
Post comment as a guest