In the past decade, Sri Lanka has successfully harnessed PPPs for creating and improving infrastructure in several sectors including ports, power and telecom. The government’s interest in financing selected large scale infrastructure projects has been rekindled with the “Mahinda Chinthana Vision for the Future” (Department of National Planning, Ministry of Finance and Planning, 2010). This 10-year strategy outlines the government’s intention to involve the private sector in infrastructure development as well as to improve the performance of state owned enterprises.
The Board of Investment (BOI), established in 1978, is structured to function as a central facilitation point for investors. BOI is committed to continuously improving the country's investment climate.
Based on the Public Utilities Commission of Sri Lanka Act 2002,
Sri Lanka set up an independent multi-sector regulator, the Public Utilities Commission of Sri Lanka (PUCSL), which was the authority to step in to certain infrastructure sectors by changing the appropriate sector legislation.
This Act has been modified several times since being enacted by Parliament. With the passage of the Sri-Lanka Electricity Act 2009, the Public Utilities Commission of Sri Lanka Act currently regulates the generation, transmission, distribution, supply, and use of electricity. The process of drafting proposed legislation for the Water Services and Petroleum industries is ongoing to enable the PUCSL to regulate these industries.
The government of Sri Lanka is currently working with the Asian Development Bank (ADB) and the World Bank to create a PPP framework in the country.
Sector-specific PPP Initiatives include the US$500 million South Container Terminal PPP of the Colombo Port Expansion Project, in which the Asian Development Bank is advising the Sri Lanka Ports Authority, and the US$240 million Queen Elizabeth Quay expansion. The government has also earmarked several highway projects that will be financed and operated by the private sector and has leased out a part of its track and locomotives in the railway sector.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
Draft power purchase agreement developed by Ceylon Electricity Board for wind power plants. Charging is based on actual energy produced - unless cannot be delivered to purchaser due to a purchaser risk, in which case the charge is based on deemed energy output.
The Government of Sri Lanka (GOSL), with the assistance of the World Bank and the Global Environment Facility (GEF) has established the Renewable Energy for Rural Economic Development (RERED) Project, which aims to foster rural economic development through private sector and community based development models. Project targets include (a) provision of electricity access to 100,000 households through solar home systems and independent mini-grids fed by micro hydros, wind and biomass generators, (b) electrification of 1,000 small and medium rural enterprises through renewable energy resources and (c) addition of 85MW capacity through grid-connected renewable energy power plants.