Colombo Port Efficiency and Expansion Project

The government had explored the possibility of setting up a special purpose vehicle to construct the breakwater using private sector financing, but this was found to be problematic for the following reasons: (i) the breakwater would not generate revenue, (ii) the construction skills required for building breakwaters and terminals are very different, (iii) revenues would only be generated from the operations of the container terminal, and (iv) it would be difficult to attract private sector investment for the breakwater. Hence the PPP landlord model was used, where SLPA (Sri Lanka Ports Authority) would be the landlord, and the breakwater implemented as a public sector component.