COPE Flags Massive Delays at ECT: Billions Lost as Colombo Port Expansion Stalls

The long-delayed East Container Terminal (ECT) project at the Colombo Port has again come under intense scrutiny, with the Committee on Public Enterprises (COPE) warning that prolonged construction setbacks are inflicting a heavy financial and economic toll on both the Sri Lanka Ports Authority (SLPA) and the wider economy.

At its latest meeting on 13 November, chaired by Dr. Nishantha Samaraweera, COPE examined the Auditor General’s Reports for 2022 and 2023 and reviewed the SLPA’s current performance. The session expanded on issues first raised when the Ports Authority was summoned in September—this time focusing sharply on the stagnated progress of the ECT, one of the country’s most strategic port expansions.

A Project Already Years behind Schedule

The committee revealed that Cabinet approval had been granted back in November 2021 to award a Rs. 40.27 billion construction contract for developing the ECT. Despite agreements being finalized the following month, construction originally scheduled for completion by 3 January 2025—has suffered prolonged disruptions.

Due to extended delays, the expected completion date has now been pushed to July 2026, a 548-day setback. COPE members warned that such slippage is far more than a scheduling issue—it has turned into a multimillion-rupee economic burden.

Rs. 4.2 Billion Compensation Claim Raises Alarms

In what COPE described as a direct financial consequence of the delay, the contractor has already lodged a Rs. 4.23 billion compensation claim. The committee demanded a comprehensive report detailing the contractual, management, and operational lapses that allowed the project’s timeline to spiral out of control.

Committee members made it clear that these delays could not be viewed in isolation. Every day the ECT remains incomplete, Sri Lanka forfeits potential revenue from handling growing regional transshipment demand—business that may instead shift to competing ports such as Dubai, Singapore, or India’s emerging terminals.

Economic Impact: Lost Throughput, Lost Revenue, Lost Reputation

SLPA officials told COPE that construction is now progressing “rapidly” and assured completion within the revised timeframe. But experts warn that the economic impact is already being felt:

Lost handling capacity has limited Colombo Port’s ability to attract new shipping lines.

Regional competitors are capturing transshipment volumes Sri Lanka could have secured.

Higher project costs and compensation claims threaten SLPA’s already strained finances.

Delays jeopardize investor confidence, critical as Sri Lanka seeks foreign investment to stabilize its post-crisis economy.

Industry analysts note that the ECT is essential for Colombo to maintain its competitive edge as South Asia’s premier transshipment hub. Failure to deliver the project on time risks undermining long-term port revenue generation one of Sri Lanka’s most stable foreign-exchange sources.

Other Irregularities Surface during COPE Review

Beyond the construction slowdown, COPE also raised concerns about several governance and administrative lapses within the Ports Authority:

Food expenditures for employees remain high, despite previous COPE directives in 2023. SLPA officials claimed they have now introduced competitive tendering to reduce costs.

Legal action over encroached port lands has been sluggish, with the committee urging immediate enforcement of court orders to recover properties.

Questions were raised over the renaming of the Seeduwa Raddolugama Sports Club and the recruitment of its players as SLPA employees—practices COPE hinted may reflect misuse of institutional resources.

Call for Accountability as Delays Mount

With the ECT now expected to be delayed by more than a year and a half, the committee signaled that accountability must be enforced to prevent further losses. For Sri Lanka still struggling with post-crisis economic recovery the prolonged delay of such a critical infrastructure project risks deepening financial strain at a time the country can least afford it.