By: Staff Writer

March 09, Colombo (LNW):Sri Lanka is planning to enhance domestic production linkages with the mineral resources sector in Central Africa.

The aim is to develop the capacities of implementing participatory strategies for the creation and strengthening of lasting national economic linkages to mineral-exploitation-related activities.

This would involve, inter alia, stimulating dialogue among political leaders and local business organizations and professional associations, as well as foreign investors, on ways and means to ensure investment in mineral activities that facilitate the creation of new activities, jobs and subcontracting opportunities between foreign companies and local enterprises.

It will also contribute to the design of appropriate policies and regulatory frameworks of relevance to the optimization of the development impact of the mineral sector.

High Commissioner of Sri Lanka to Kenya, Kana Kananathan, engaged in a significant meeting with the President Faustin-Archange Touadéra of the Central African Republic at his country residence recently .

The discussions primarily revolved around elevating bilateral relations, focusing on avenues for collaboration, particularly in the context of Sri Lankan businesses capitalizing on the rich mining opportunities in the Central African Republic.

The dialogue emphasized fostering economic ties and exploring strategic partnerships to facilitate the effective utilization of the abundant mineral resources in the region by Sri Lankan entrepreneurs.

Central African Republic”s minerals include diamonds. Gold, uranium, iron ore, copper, and manganese

The meeting between President Faustin Touadéra marks a pivotal step towards enhancing economic cooperation and opening new avenues for mutual growth and prosperity.

Kananathan said the meeting was exploring rich mining opportunities and strengthening bilateral ties for mutual growth .

Sri Lanka seems to have impressed the Central African Republic with infrastructure and other developments to mine its abundant natural resources ranging from oil, uranium and lithium to gold, diamonds, iron ore and copper.

The SL government needs to feed its now strengthening economy and we need their technical know-how. It’s a win-win partnership for both he said

Central Africa has massive reserves of a wide range of minerals, most of which are untapped. From aluminium to zinc, Central Africa has enormous potential to develop into a mining powerhouse, and with the recovery in commodity prices as well as the mining super cycle period, the country is seeing more mining projects being developed.

By: Staff Writer

March 09, Colombo (LNW):The government is set to enact new Public Procurement Law to end the practice of accepting unsolicited proposals without competing bids and there is a lack of clarity in the government procurement which leads to reports of large-scale corruption, official sources said.

Many government purchases are made by public tenders, usually advertised in the local media and increasingly through government websites.

The government has publicly committed to follow international government procurement standards but often implementation of international procurement standards is weak, especially for projects and goods not funded through international financial institutions.

Well-informed local agents can be the key to winning these tenders, though even the most connected local firms have trouble navigating the labyrinth of the government-tender process.

Local agents also often represent more than one foreign supplier, so when they encounter difficulties, including charges of possible corruption, they are reluctant to voice concerns fearing it will jeopardize other business interests. It can sometimes be difficult to get an objective appraisal from local agents.

Sri Lanka’s current public procurement system based on comprehensive National Procurement Guidelines issued in 2006/7 is being replaced by a new Public Procurement Law in December 2024, public finance department sources proclaimed.

The country currently lacks a formal legislative basis for procurement. All government procurement are being carried out in accordance with Cabinet approved guidelines.

The Procurement Guidelines 2006, sets out various procurement methods, bidding procedures, and rules for awarding contracts.

The proposed law is aimed at enhancing the effectiveness, efficiency and transparency in the public procurement system making it more accountable, streamlined and cost effective, a high official of the department said.

This will be a fulfillment of International Monetary Fund conditions under its public reforms and management of public resources.

The government authorities recognise that public procurement remains an area of governance weakness, with associated corruption vulnerabilities, despite attempts to improve its effectiveness.

The reports of the Finance Ministry, the Auditor-General’s Department, and the Department of Management of Audit have indicated procurement malpractices and corruption that have led to inefficiencies and waste of scarce state resources.

These reports have identified issues including lack of procurement planning, not using relevant procurement procedures stipulated by the Procurement Guidelines, inadequate competitiveness in the selection procedure, accepting unsolicited proposals for high value projects.

The other short comings were poor contract management, lack of knowledge and capacity of the officials in procurement, poor monitoring and weak external oversight, and the incomplete coverage of independent complaints mechanisms.

A regulatory body will be established under the new law with necessary authority and competency for the modernisation of the legal framework, public finance department high official disclosed.

Necessary action will be taken to design and operate a designated website containing information on al public procurement contracts above Rs 1 billion while updating it in every 6 months.

A list of contracts above a designated threshold that were assigned without a competitive tendering process will be published in the web site Information is to be updated every 6 months.

All public procurement transactions will be carried out under an e-Government Procurement System by the end of 2025 in accordance with recommendations made by the IMF, he said.

By: Staff Writer

March 09, Colombo (LNW): The government has accelerated the World Bank funded US$434 million Climate Resilience Multi-Phased Programme to be expedited as it was carried out in slow pace since 2021, irrigation ministry announced.

“This project is all about protecting people’s lives, property, and public assets,” said Faris Hadad-Zervos, Country Director of the World Bank for Maldives, Nepal, and Sri Lanka.

“Investments to modernize existing systems with state-of-the-art technology and to international standards will help the Government realize its vision of a disaster-resilient Sri Lanka”he said , noting that public support and coordination among core stakeholders will lead to the success of this project.

The Government and the World Bank signed a US $92 million financing agreement for the Phase I of the project which was expected to benefit around 11.2 million people across the country by modernising the weather, flood, and landslide forecasting and early warning systems.

The project builds on the successful collaboration between the government and World Bank in flood-risk mitigation and long-term resilience to climate risks, which began in 2010 with the Dam Safety and Water Resources Planning project, followed by the Metro Colombo Urban Development Project in 2012 and through the Climate Resilience Improvement Project in 2014.

The COVID-19 pandemic, and the country’s economic crisis have received the government’s attention and priority making other important issues, like the effects of climate change less important , a senior official of the ministry said.

A progress review meeting of the project was held at the irrigation ministry recently with the participation of minster Pavithra Wanniarachchi, state minister Sashindra Rajapaksa, several senior officials and World Bank representatives.

The South Asia Regional Director for Sustainable Development at the World Bank. Dina Umali-Deininger and other representatives have suggested a strategic plan to achieve the objectives of project expeditiously.

The two sides agreed to award relevant contracts for projects up to the amount of $ 51million giving priory to economically productive areas as soon as possible under the phase 1 which will be completed by 2026. .

The project will support the government departments to better forecast weather-related hazards, improve early warning systems, and invest in flood resilient infrastructure. It will also lay the foundation for reducing flood risks in the Kelani River basin in the long run.

Measures will be taken to ensure safe and reliable drinking water supply for Colombo by improving the salinity barrier at Ambathale, and long-term climate resilience in the Kelani River basin through studies and detailed investment proposals for multi-purpose flood resilience infrastructure in the next project phases

It will also be improving the salinity barrier at Ambathale,. The project builds on years of experience, technical studies, and close consultation with stakeholders – relevant government departments, project affected people and civil society groups.

A sum of $15 million will be allocated for 25 districts to maintain and rehabilitate rural tanks and canal ways for the benefit of farmers effected by economic crisis.