NTPC of India to Pursue Coal Power Project in Sri Lanka

28th March 2013, www.business-standard.com, By Sanjay Jog

Undeterred by current political developments in Sri Lanka and Bangladesh, NTPC is quite firm to pursue development of imported coal-based power projects in these countries.

The company has rubbished reports appearing in a section of press relating to losing the projects to China.

NTPC and Sri Lankan team held talks in New Delhi to discuss changes to the power purchase agreement (PPA) and the implementation agreement for the 2x250 MW imported coal-based power project at Sampur in Trincomalee district, Sri Lanka.

These negotiations took place close on the heels of India's decision to vote in favour of a US-sponsored resolution censuring Sri Lanka on its human rights record and the subsequent postures from political parties in both the countries.

Similarly, NTPC is also not perturbed over the present situation due to the faceoff between the ruling and opposition parties in Bangladesh. The company is going ahead with the development of 2x660 MW imported coal based project at Khulna division of Bangladesh.

A NTPC spokesperson told Business Standard, “In Sri Lanka, NTPC is going ahead with the proposed 2x250 MW coal based JV Project in Trincomalee, Sri Lanka. A JV Company (Trincomalee Power Company Limited) between NTPC and Ceylon Electricity Board (CEB) has already been incorporated and the project agreements including Power Purchase Agreement are expected to be signed soon.”

NTPC and CEB had signed an agreement in 2011 to set up a coal fuel-based 500 MW plant at a cost of over Rs 4,000 crore at Sampur.

NTPC’s team led by chairman and managing director Arup Roy Choudhury was in Sri Lanka in February and held talks with the authorities there with regard to project at Sampur. Sri Lanka’s Treasury Secretary PB Jayasundera had already dismissed news reports that NTPC was pulling out of the project.

As far as project in Bangladesh is concerned, the NTPC spokesperson said, “NTPC is going ahead to develop a 2x660 MW imported coal-based project at Khulna division of Bangladesh in joint venture with Bangladesh Power Development Board (BPDP). NTPC and BPDP have already signed a JV Agreement in January 2012. Feasibility report for the project has been finalised. The project agreements like PPA are expected to be signed soon.”

It must be mentioned here that NTPC, with total installed capacity of 40,674 MW (including JVs), has set a target to have an installed power generating capacity of 1,28,000 MW by the year 2032.

Related Info :

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• Electricity Tariff Increase - First, Operate Hydro Plants in an Optimum Manner, Improve Plant Efficiencies, Cut Losses and Switch to more Economical Fuel

• Sri Lanka Combined Cycle Power Plants more Expensive than Diesel Engines - Information on Power Sector not Available in the Past Now Coming Out

Blue and Sperm Whales and Dolphins are back in Trincoo, Eastern Sri Lanka

21st March 2013, www.dailymirror.lk

Since the lost whales of Trinco were rediscovered in 2010, by a team of naturalists at ‘Cinnamon Nature Trails', numerous sightings of blue whales, sperm whales and dolphins have taken place making the season up in the East a rewarding experience.


The great blue off the coast of Trincomalee seems to be a popular playground for these marvellous marine mammals during March through April each year. As in previous years, the Cinnamon Nature Trails team is ready to take guests on a voyage that will almost guarantee a sighting of Whales and Dolphins including a glimpse of a super pod of Sperm whales often seen in Trinco during this period.

With all safety measures in place and a crew well experienced to make your cruise pleasurable. The Eastern whale watch is set to begin shortly off the city by the sea. Head of Eco Tourism for John Keells Resorts Chitral Jayatilake mentioned that all guests who will flock to Trinco this season for whale watching are welcome to submit tale fluke images for an ongoing Blue whale ID programme, while clear images once selected will be uploaded to a Flickr site with picture credit.

Chaaya Blu Trincomalee is situated just a few kilometres off Trincomalee and was built to reflect a retro chic design. Its strategic location gives guests the opportunity to experience these large marine mammals and the acrobatic spin of Dolphins just a few minutes away from the resort, or perhaps if one is lucky enough just at the very shores of the sea at Chaaya Blu.

A selection of Beach Chalets, Superior rooms and two Suites make up a total of 81 rooms, with two restaurants; one specialized in seafood and two bars which cater to your every whim.

Related Info :

• SL Navy Shifts Whale Watching Expeditions to Eastern Seas from Southern as Migration Starts with the Monsoon

• Sri Lanka is the Best Place in the World for Seeing and Photographing Blue Whales. Migratory Whales Passing Southern Seas of Sri Lanka Confirmed

• Sri Lanka's Keells Invests Rs 450mn in Star Class Chaaya Blu Hotel in Trinco

France's AFD Funds Largest Infrastructure Project in Sri Lanka's Eastern Province & Trincomalee

16th March 2012, www.ft.lk

Cabinet has approved a Rs.11.2 billion infrastructure project funded by France for the former war-torn Eastern Province, a Minister said yesterday.

Acting Cabinet Spokesman Minister Lakshman Yapa Abeywardana told the media that the project would fund much-needed infrastructure for the town of Trincomalee in the Eastern Province. The money would also be used to upgrade 100km of highway, build 41km of provincial roads and repair five main bridges.

The Batticaloa-Tirikkondiadimadu-Trincomalee Road (A15) composed of 99 km and the Allai-Kantale Road (B10) spanning 41 km will be the National Highways while Provincial Roads will be the stretch from Mavadichchenai to Kaddaiparichchan (12km). The major bridges are Ralkuli, Upparu, Gangei, Kayenkerni and Verugal, the Cabinet statement noted.

This is the first large-scale infrastructure project funded by Agence Francaise de Developpment of France and was presented to the Cabinet by President Mahinda Rajapaksa. The project is expected to boost tourism in the area as well, which will benefit the economy as the Government expects German tourist arrivals to increase by 15%-20% after the success of the German tourism fair in Berlin.

“We will prove that no other country has invested so much money in such a short space of time in a former conflict zone. We are giving projects in the north and east precedence over those in the south,” he said, referring to the US-backed resolution presented at the UN Human Rights Council in Geneva.

Abeywardana insisted that the Government was confident of defeating the motion and proving to the world that Sri Lanka had achieved peace.

Sri Lanka Ports Authority to Invest Rs 1bn on Trinco Port City Development

02nd February 2012, www.dailynews.lk, By Indunil Hewage

Sri Lanka Ports Authority (SLPA) will invest approximately Rs one billion for infrastructure development of the Trincomalee Port City Development project in a bid to facilitate prospective investors who have expressed willingness to set up port related new ventures in the Trincomalee port .

SLPA will infuse money to develop roads and electricity facilities in the port area. It was recently disclosed that the government was ready to lease out land at the Trincomalee port to private investors and Cabinet approval has also been granted to this move. The Trincomalee Port City Development project which spreads across more than 500 acres of land will mainly consists of an Industrial Park and a Tourism Zone. However, the main focus of the authorities is to develop the industrial park at the initial stage.

Sri Lanka Ports Authority last month published the project proposal documents to private sector investors who are interested in setting up port related business ventures in the Trincomalee Port Industrial Park. At the moment, around 15 investors have purchased the required documents from SLPA. Interested investors will be able to collect the project proposal documents at the Port Committee Building situated in Fort until April 10, SLPA Planning and Development Chief Engineer Susantha Abesiriwardena told Daily News Business.

Each investor will be allocated five acre of land at the industrial park. However, investors are allowed to subdivide or amalgamate the land according to their preferences. The investors will have to comply with the requirements as requested in the project proposal document to get the SLPA approval to set up business ventures at the Trincomalee port vicinity, a SLPA senior official told the Daily News Business.

While the Oluvil duel purpose harbour being constructed, the Galle harbour too is undergoing transformation and is to be upgraded to a tourism harbour. Many tourism related investment opportunities would be open to investors.

Meanwhile the Hambantota Port project too has gained momentum with over one billion investments being found. Heyleys was the first company to invest in the Magampura Port by laying the foundation stone for a fertilizer processing plant.

In addition aviation sector investors too would have an opportunity to invest at the new Mattala Airport which is scheduled to be opened end of the year.

Related Info :

• Sri Lanka Invites Investments on Trinco Port. Large Tracts of Land in the Eastern Port to be Made Available by March

Sri Lanka's 4th Golf Course Eagles Golf Links Opened by Secretary to the Ministry of Defence & Urban Development Gotabaya Rajapaksa at Air Force Academy Chinabay, Trincomalee

07th January 2012, www.airforce.lk

The 04th Golf Course in Sri Lanka “Eagles’ Golf Links” declared open today (07th  January 2012)  by Secretary to the Ministry of Defence and Urban Development Mr. Gotabaya Rajapaksa at Sri Lanka Air Force Academy Chinabay.

The Chief of Defence Staff Air Chief Marshal Roshan Gunethileke , Commander of the Air Force Air Marshal Harsha Abeywickrama, Chief of Staff Air Vice Marshal Kolitha Gunatilleke, and other distinguished guests were present at the Occasion.        
  
Golf has an interesting history attached to it. As a matter of fact the known and confirmed history dates back to a few centuries having its roots in Scotland. However, the far more ancient roots are lost in the sands of time and is being debated between England, Persia, Rome, and even Ancient China. Nevertheless, this game where gentlemanly ethics, standards, professionalism, and class has made a lasting footprint on the global scene of sport.

Adding to the growing list of golf courses around the world is our very own special Eagles’ Golf Links Golf course. Owned and maintained by the Sri Lanka Air Force, the Eagles golf course unfolds its lush green fairways in the distant corner of China Bay, a few kilometers off Trincomalee.

In it’s relatively new form, the Eagles golf course is truly complete. The fairways extend down from par 3 to par 5. The challenges are spiced up with water hazards, sand bunkers, roughs and of course doglegs left and right. The view from the teeing grounds is outstanding and breathtaking. A walk along the fairways will take one over rising and sinking carpets of green, traditionally designed arch bridges and under cozy shades of garden hedges grown over.

China Bay is actually a treasure trove of history. This land, which has been blessed with military presence since the time of the British, is home to one of Sri Lanka’s largest airfields which was needed to cover the world’s second deepest natural harbour. During the Second World War, Trincomalee was one of two targets attacked by Admiral Nagumo’s fleet and was deftly defended by the Royal Air Force. The tense military situation warranted a significant presence in Trincomalee. The evidence of their presence can be seen in and around the general area having receded into being relics of a long lost legacy. The Eagles golf link blends in with history in a novel way to link the days of yesteryear to a hopeful future.

Standing at the beginning of the first tee, is the club house. Aesthetically designed to appease the golfer who seeks relaxation the club house offers a unique sense of natural beauty. The lounge and open lawns which recede into the bay can simply mesmerize any body, whether a golfer or not, into a hypnotic spell which can be quite difficult to shake off. Alongside the club house, the Eagles golf course offers the services of luxury cabins which can be aptly termed as star class. This offers the golfer the chance to truly relax, away from the hustles of a busy life. And is it only “Golf” that this course can offer? Well, that is a question where many may get it wrong. Angling is a side hobby which a golfer might want to try out during his stay. The calm and somber waters, that presents itself to the club house and the cabins offer a unique and novel opportunity.

Access to the golf course is quite easy, if one was to discount the journey to China Bay itself. But turning off at the 4th mile post along the A6 highway and proceeding towards China Bay, the journey would wander past the picturesque view of the China Bay airfield. Travel up a few hundred metres beyond the Air Force Academy, and the welcoming sign of the golf course would be hard to miss alongside the road.

The Eagles’ Golf Links Golf Course offers this growing Community of golfers in Sri Lanka a unique opportunity to experience the country and its beauty-truly in style.

SL Navy Shifts Whale Watching Expeditions to Eastern Seas from Southern as Migration Starts with the Monsoon

06th June 2011, www.news360., By Prasanna C Rodrigo

Starting from this month Sri Lanka Navy will shift its Whale watching expeditions from Southern seas to the once troubled Eastern seas of the country.

SLN says the shifting comes as the Whales who appeared in the Southern seas during the November to February period have now started to appear in the Eastern Sea.

Commodore N. Artigala of Sri Lanka Navy said, Whales start migrating from one area to another when the Monsoon season begins, which is now experienced in the South of the country.

According to Artigala the Whales can be now seen in the Mullative seas and also in the seas closer to the Trincomalee Harbour.

He said “If you’re lucky you can see them in the vicinity of the port”.

However, the Commodore added, unlike in the Southern seas where sometimes groups numbering to 20 to 25 Whales can be seen, in the Eastern seas only few Whales can be seen at a time.

“Alfa 543” a ship which transported soldiers from Trincomalee to Jaffna and vice versa during the war time will conduct the “Whale Watching Expeditions” in the Eastern Sea.

The first expedition of the “Alfa 543” which will operate from the Trincomalee port is scheduled for today.

Related Info :

• Sri Lanka is the Best Place in the World for Seeing and Photographing Blue Whales. Migratory Whales Passing Southern Seas of Sri Lanka Confirmed

Sri Lanka's Jetwing Plans Resorts in Central & East to Add 500 Rooms over next 2 Years

25th June 2011, www.lankabusinessonline.com

Sri Lanka's privately held Jetwing leisure group, is planning new project in the central and war-torn eastern areas of the island that will add 500 rooms over the next two years catering to a post-war boom, officials said.

"We are really excited about the East and we want to build in Trincomalee, Arugam Bay and Pasikudah," Jetwing chairman Hiran Cooray said.

"We think there is lot of potential in the East."

Tourist arrivals have increased by 46 percent last year and the five months up to May arrivals have increased 40 percent to 328,000 from a year earlier.

Pasikudah, a once popular resort destination before ethnic riots and the Tamil Tiger insurgency is making a gradual comeback with hoteliers aggressively constructing hotels along the bay.

In May 2011 Maalu Maalu Resorts and Spas opened a 40 chalet fishing village style resort in Pasikudah, the first resort hotel to complete construction in the small fishing hamlet since the end of the war in May 2009.

The Jetwing group is looking at building an managing a 750 million rupee 80 room resort in Pasikudah.

"We are looking at 50 rooms in the first phase and another 30 in the second," managing director of Jetwing Hotels, Ruwan Samarasinghe said.

"Construction will begin as soon as approval comes."

Jetwing upgraded a hotel in Negambo, near Sri Lanka's international airport in the Western coast Friday to 4-star standard Friday relaunching it as 'Jetwing Blue'. The firm said it spent 8 million US dollars to spruce up the 112 room

property spread across nine acres.

The group has four properties in Negambo.

The company has already announced plans to build hotels in Colombo, Jaffna, Uppuveli and Nilaveli in Trincomalee, Kandy, Yala and Dambulla.

Jetwing says an 80 room four star hotel is on the cards for Dambulla, which will cost 800 million rupees to build.

The construction of the hotel will consolidate Jetwing’s presence in the island’s cultural triangle of Anudhapura, Polonnaruwa and Dambulla where the main tourist attraction is Sigiriya, an ancient rock fortress.

Construction of the hotel in Dambulla is set to begin over the next six month.

“We hope to add 500 hotel rooms to the industry within the next 24 months”, Jetwing’s Head of Sales and Marketing, Trevor Reckerman said.

Tourism authorities are expecting 750,000 arrivals this year and plan to attract 2.5 million tourists by 2016. Officials estimate that the industry needs 35,000 hotel rooms to cater to the demand up from the current 15,000.

Related Info :

• Jetwing Goes Public with Five New Hotels in Yala, Dambulla, Trinco, Jaffna and Colombo

• Two Loris Sighted on Jetwing Trail at Vil Uyana, Sigiriya

Global Energy Secures First Private Refinery Deal in Sri Lanka. A Plant Twice the Size of State Run Sapugaskanda Refinery to be Built in Trincomalee

15th march 2011, www.thebottomline.lk, By Santhush Fernando

US-based Global Energy & Industrial Operations, Inc. has secured the first private oil refinery deal in Sri Lanka, under which a plant twice the size of the current state-run Sapugaskanda Refinery will be built in Trincomalee.

Although the project was earlier earmarked for Hambanthota and anticipated to process 150,000 bpd (barrels per day), it had been shifted to Trincomalee due to environmental concerns while production capacity had been brought down to 100,000 bpd.

The Bottom Line on March 13, 2011, exclusively reported that Global Energy & Industrial Operations, Inc. has signed a Memorandum of Understanding (MoU) to set up a 150,000 BPD (Barrels Per Day) refinery in the emerging port city of Hambantota.

The Bottom Line learns that the Company had requested a guarantee from the government that it (CPC) will purchase 50 percent of the output (which is the gap between Sri Lanka’s requirement and the production capacity of the out-dated Sapugaskanda plant run by Ceylon Petroleum Corporation) while the remaining half would be intended for export.

The project is to kick start end 2011, with the financial closure expected by December. Although the project developers were negotiating with the banks it is learnt that, the venture faces several financial constraints.

However it is learnt that the Petroleum Industries Ministry would request modifications to GE&IO’s original proposal that the government purchases refined products at Singapore plats plus a premium of US $ 2.1 per barrel.

Earlier the refinery estimated to cost between US $ 1.5 to 2bn (Rs. 166.5 to 222bn), was projected to be thrice the size of the CPC Refinery and was mainly intended to refine crude oil for the export market, with Hambantota being poised to become a mega global hub in energy, shipping and aviation.

“It is highly commendable that this project was finally given the green light by authorities, as Sri Lanka’s energy security was facing a grave threat with authorities turning a blind eye to modifying the outdated Sapugaskanda refinery,” an energy expert told The Bottom Line on grounds of anonymity.

However, he lamented that it was unfortunate that the line ministry was not kept informed that when GE&IO singed an MoU on a petroleum industry-related project.

“Even the Ministry Secretary Titus Jayawardene was not aware of these developments.
How can the ministry take a proper decision on whether to go ahead with the US $ 2.2bn Sapugaskanda Project if it is not aware that an MoU was signed with a private party? The Ministry or the CPC cannot gamble with funds because these are public moneys which the country must repay later on. If the private refinery is coming up, it is good because we may not have to find a staggering amount such as Rs. 244.2bn (US$ 2.2bn),” he added.

Numerous energy experts and think tanks have time and again emphasised that Sri Lanka needs to properly implement its energy policy in transparent and investor-friendly manner, if the country was to emerge as a global player in the energy industry.

Meanwhile, the Rs. 244bn Sapugaskanda Oil Refinery Expansion and Modernisation (SOREM) project has been in the limbo since 2007 as Iranian and Sri Lankan authorities failed to agree on an exact modus operandi to implement the project. “Rather than the CPC, already embroiled in a major financial crisis, bearing a staggering cost of US$ 2.2 to upgrade Sapugaskanda, it is more prudent and commendable that a private party was allowed to proceed with an alternative, at an estimated cost of nearly half of the former,” he added.

Related Info :

• Global Energy to Set up a 150,000 bpd Refinery in Hambantota Magampura Port City

• Sri Lanka May Get $1.5bn from Iran to Expand Refinery

Sri Lanka Air Force Opens Resort in Trincomalee. President Mahinda Rajapaksa Opens Marble Beach Resort

15th March 2011, www.dailynews.lk, By Sandasen Marasinghe

President Mahinda Rajapaksa opened the Air Force Resort 'Marble Beach' in Trincomalee built by the Sri Lanka Air Force on Sunday.

The Air Force Resort has 11 cabanas at the moment. The Resort is open for local and foreign tourists now.

Air Force Spokesman Group Captain Andrew Wijesuriya said the Air Force took initiatives to construct the cabanas for tourists to enjoy the beauty of the Sri Lankan beaches.

He said the SLAF discovered this hidden treasure at Trincomalee and developed a luxurious resort surrounded by green mountain peaks, in front of the spectacular view of the Marble Beach close to Kinniya.

The cabanas are constructed with SLAF resources and run by them.

SLAF personnel are employed there.

He added that there is an open area in the beach for the public and any person can enter the area. The SLAF also runs a separate restaurant.

Related Info :

• Download Brochure : Marble Beach, Air Force Resort, Trincomalee

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Australia's Mitchell Group Signs Sri Lanka’s Biggest ever FDI Project, $700mn Trinco Gateway Park Industrial Development Project

12th March 2011, www.dailynews.lk

The Mitchell Consortium, an international group led by Australian company Mitchell Group Holdings, has signed an exclusive agreement with the Sri Lankan Government to head up Sri Lanka’s largest ever foreign direct investment for an industrial development project.

The Sri Lankan Government will remain as a strategic partner.

The project master plan includes development of a bulk commodities terminal with stockpiling and blending capabilities, an export coke production plant and an iron ore palletisation plant at Trincomalee Bay.

The project will be delivered in phases, with a total value exceeding US $ 2 billion.

The first phase of the project, valued at US $ 700 million, includes a deepwater jetty and stockpiling facility. The consortium is also investigating development of other related industries in the region.

Dubbed the Trinco Gateway Park, the project will open pathways for the export and import markets of Asia, Africa and Australia and provide a strategic access gateway to satisfy the growing demands of the Indian market.

The project consortium will operate through Sri Lanka Gateway Industries Pte Ltd.

It consists of Mitchell Group Holdings, specialising in delivering international energy-related projects; Salva Corp, specialising in international bulk materials marketing and large scale international project delivery; Sri Lankan development partner Asset Holdings and is being advised by a number of international firms, including PricewaterhouseCoopers and Ausenco Sandwell.

Mitchell Group Holdings CEO Nathan Mitchell said Trincomalee Bay would serve as a strategic gateway.

“The development will be a centrally-located, deepwater gateway for international bulk commodities movements, which has the potential to accommodate 400,000t Chinamax vessels,” he said.

The group has completed detailed engineering and environmental studies, now progressing to the next technical planning phase using World Bank environmental standards as a benchmark for the project.

“Conceptual Development Plans for the project will see construction of a deepwater port with upto 80Mt capacity, together with bulk commodity stockpiling and loading facilities, a 5Mtpa coke plant and a 5Mtpa iron ore palletisation plant,” Mitchell said.

Mitchell said the Trinco Gateway Park project would serve to economically benefit local communities and the wider region. “The Trincomalee region will benefit through direct employment opportunities, community development and up-skilling during construction and long-term operation of the project,” he said.

The consortium will establish local vocational training centres in partnership with leading industry specialists.

Image: Board of Investment Chairman Jayampathy Bandaranayake exchanging the agreement with Mitchell Group Holdings CEO Nathan Mitchell.

Related Info :

• Australian Consortium to Set up Heavy Industries in the Eastern Port of Trincomalee with $700mn Investment

Visakhapatnam in East coast of India to be Connected to Colombo by Direct Flight & to Trincomalee by Ferry Service

28th February 2011, www.news360.lk

Sri Lanka says the city of Visakhapatnam which is located in the Eastern coast of India will be connected to Colombo via direct flights and to Trincomalee through a ferry service.

This was disclosed by Sri Lanka’s High Commissioner for India Prasad Kariyawasam who was speaking at a recent seminar organized by the Andra Chamber of Commerce of Visakhapatnam.


Further speaking at the seminar titled “Business Development and Investment Opportunities in Sri Lanka”, Kariyawasam said this would be done for both “commerce and pleasure travel”.

The High Commissioner said building up such connectivity between Sri Lanka and India is vital to facilitate commerce between the two nations.

According to Kariyawasam already, 98 flights per week connects Colombo and various Indian cities and about 70% of Colombo Port’s capacity is utilized for transshipments to and from India.

Kariywasam announced the upcoming Indian investments in Sri Lanka are expected to be in areas such as oil exploration, power, IT, telecom sector, hotels and resorts and the development of Special Economic Zones.

Related Info :

• Sri Lanka India Ferry Service between Colombo and Tuticorin to Start on February 28 with a 500 Passenger Capacity. 100kg Baggage Allowance Given

Australian Consortium to Set up Heavy Industries in the Eastern Port of Trincomalee with $700mn Investment

24th February 2011, www.lankabusinessonline.com

Sri Lanka is considering a proposal by an Australian consortium to set up heavy industries in the eastern port of Trincomalee with an investment of 700 million US dollars, a government statement said.

The government is to set up a special zone for heavy industries in Trincomalee to provide access to a deep-water port for investors keen to enter the island after the end of its 30-year ethnic war, a spokesman said.

"There's so much of enthusiasm by businessmen and foreign investors, particularly in the region, to invest in the counter after 30 years of war," media minister Keheliya Rambukwella told a news conference.

"They found that this country that can be commercial hub. One of major components needed is access to a port and the government has decided to set up a zone particularly for heavy industries which need port access."

The statement said Mitchell Consortium, a multinational consortium from Australia with partners from Brazil and Sri Lanka, has made an unsolicited proposal for a zone with heavy industries.

These include a coking coal or metallurgical coal and an iron ore palletizing plant for steel making, and a sugar refinery.

The zone for heavy industries is to be set up on 97 square kilometres of land in the Sampur area of Trincomalee, near the entrance to the bay, part of which has already been earmarked for an Indo-Lanka joint venture coal power plant.

The statement said the Cabinet of ministers gave approval for the consortium to conduct feasibility studies for the project, the first phase of which will be 700 million dollars.

Rambukwella said environmental safeguards will be given high priority in the project.

Related Info :

• Sri Lanka Invites Investments on Trinco Port. Large Tracts of Land in the Eastern Port to be Made Available by March

Jetwing Goes Public with Five New Hotels in Yala, Dambulla, Trinco, Jaffna and Colombo

13th February 2011, www.sundaytimes.lk

The Jetwing Group has plans to go public with the five new hotels it’s putting up this year.

“Hotels in Yala, Dambulla, and Uppuveli in Trincomalee and Jaffna, and a Colombo unit are on the cards for Jetwing this year and we plan to go public after we complete a private placement for them,” Hiran Cooray, Chairman Jetwing Hotels Ltd told the Business Times.

He said that all these hotels together will cost Rs. 4.5 to Rs. 5 billion, adding that the company has not yet finalized the modalities of listing publicly, but is discussing it. “We may list all the hotels together or do it individually,” he said.

Mr. Cooray said that while Yala and Dambulla properties are being handled by the group alone, the hotels in Jaffna, Trincomalee and at Ward Place Colombo (which will be a business hotel) will be handled with partners.

He said Jetwing has upgraded all of its hotels except for St. Andrews in Nuwara Eliya, which they’ll be doing this year. He said the company has taken a ‘firm’ decision not go to the Maldives as they feel the market there is saturated.

Mr. Cooray said that the hotel they were planning in India didn’t get the Indian authorities’ approval and this project is now at a standstill. About two years ago, Jetwing signed a management contract with Kerala Balers (Pvt) Ltd, a coir exporting company to manage a hotel in Kerala.

However, Mr. Cooray noted that Jetwing is quite strong internationally. “We have a hotel in Vietnam and we are managing one in Luang Prabang in Laos,” he said adding that Jetwing will focus on expansions within the island, while also looking out for international projects.

“The new hotels will complete the entire circuit around the country,” he said adding that Jetwing is open to explore other areas related to tourism.

Related Info :
• Jetwing Sea Opens after $5mn Upgrde of Former Jetwing Seashells at Negombo. A JV with Zinc Journeys of Chaudhary Group Nepal

• Sri Lanka's Jetwing Invests 6bn on Eight Hotels Covering All Parts of the Country

Land for Lease in North & East Sri Lanka for Rs20mn an Acre for Tourism Development

07th February 2011, www.island.lk, By Mario Andree

The government is planning to lease out land at Rs. 20 million an acre on a 99 year lease in the North and East for tourism development, and investors would be served on a first-come-first-served basis as long as they can afford it.
Sri Lanka will lease 500 acres of land in the North East coast to potential investors in order to develop tourism infrastructure, a tourism official said.

Sri Lanka Tourism Development Authority Chairman Dr. Nalaka Godahewa told The Island Financial Review that the Cabinet had granted approval to sell land in the North and East under a 99 year lease agreement at Rs. 20 million an acre.

A stretch of land in Kuchchaveli, North West off Trincomalee has been identified for this purpose.

He said the land would be leased out on a first come first served basis after one-on-one interviews with the Treasury. "Who ever applies and can afford to pay for it, will be leased the land."

Denying recent reports in the press, Dr. Godahewa said the Kalpitiya island resorts project, which attracted 11 bidders, was going ahead. He said the bidders had been shortlisted to six and was handed over to the Cabinet-approved procurement committee for evaluation. "The results are still pending," he said.

However he said most likely Kalpitiya would also follow the same pattern of Kuchchaveli to develop tourism infrastructure.

Related Info :
• Sri Lanka Gets $500mn Tourism Proposals for Ten Kalpitiya Islets off North Western Coast

• 60 Investors to Build Hotels in Trinco in the Newly Proposed 8-kilometre Tourism Zone on the Kuchchaveli coast, Trinco, Sri Lanka

Sri Lanka Invites Investments on Trinco Port. Large Tracts of Land in the Eastern Port to be Made Available by March

07th January 2011, www.lankabusinessonline.com

The Sri Lanka Ports Authority (SLPA) plans to invite investors to make proposals for investments in the eastern port of Trincomalee where large tracts of land are available by March, its chairman Priyath Wickrama said.

"We're developing Trincomalee and plan to issue a request for proposals to develop land," Wickrama said, delivering the annual P B Karandwala Memorial Lecture. "We plan to issue the RFP by March."

The lecture was organized by the Chartered Institute of Logistics & Transport Sri Lanka to honour a key figure in ports and shipping in the island.

Wickrama said 9,000 acres of land are available in Trincomalee and that previous RFPs had not drawn the desired response because of the ethnic war.

The 30-year war ended in May 2009 resulting in an economic boom which growth projected at 8.5 percent this year after eight percent growth in 2011.

"Now the situation has changed and there is a lot of potential for investments," Wickrama said.

Trincomalee will be developed more as a leisure port and no more industries will be allowed.

The port has a cement plant and flour mill.

"In the future we will not allow polluting industries as Trincomalee is a very sensitive area. It is one location where you can see elephants and whales - where the two giants on land and in the sea can be seen in one location."

FPS Lanka for Operations at Southern Port of Hambantota and Eastern Trincomalee Harbour to Handle Post-war Reconstruction Cargo

29th December 2010, www.lankabusinessonline.com

Sri Lankan logistics firm FPS Lanka is considering setting up offices in the new southern port of Hambantota and in eastern Trincomalee harbour to handle an anticipated influx of cargo flows for post-war reconstruction.

It expects new logistics contracts to be awarded in the first quarter of 2011 as projects get finalised, FPS Lanka managing director Gihan Nanayakkara told LBO in an interview.

The firm is a joint venture between Bertling Logistics India and Famous Pacific Shipping which got together to offer logistics services, especially given the expected increase in cargo flows for post-war reconstruction and growth.

Sri Lanka's 30-year ethnic war ended in May 2009 resulting in an economic boom, with growth forecast to hit eight percent this year, along with a sharp increase in tourists. Nanayakkara said the joint venture is the first time the parent firms are collaborating and the partnership could be extended to other locations if necessary.

Sri Lanka embarked on huge infrastructure projects even before the war ended, with several highways, railways, power plants and high-rise buildings being built along with an airport and port in Hambantota and another port in Colombo.

Hambantota port was opened only a month ago and lies close to the main maritime trade route.

Nanayakkara said Bertling its own fleet of ships, including heavy lift ships, and can provide the specialised heavy lift skills needed for post-war Sri Lanka where such skills are in short supply.

Nanayakkara said the joint venture has access to skilled personnel and equipment in south Indian ports and can take only a few days to mobilise.

The company is also considering business opportunities in the Maldives where a tourism revival means more resorts are being built.

"Every island resort has its own harbour basin which means dredging, a pier, and transport of almost all supplies by air or sea," said Nanayakkara.

In Sri Lanka, while some major projects are under construction many more are in the pipeline with logistics contracts to ship the supplies required expected to be awarded in the first quarter of 2011.

One project the FPS Lanka joint venture supplied was the 300MW power plant in Kerawalapitiya, on the north-west coast.

Sri Lanka Domestic Airports to be Commercialized under Public Private Partnerships

29th December 2010, www.news360.lk

Sri Lanka says, work towards transforming several domestic airports to commercial airports is now underway.

Secretary to the Ministry of Ports and Aviation Ranjith de Silva said, among those airports ranks Palaly, Trincomalee, Ampara and Ratmalana.

He said, the commercialization of the above Airports will be carried out under the basis of public – private partnerships.

According to De Silva, already a private party has forwarded a proposal showing willingness to develop Ratmalana airport into a commercial airport.

The Government expect investments to come into develop runaways and terminals along with other facilities in the above airports.

Once the Domestic Airports are commercialized, a air travelers to Sri Lanka can directly rchase a ticket to the above airports from any location in the world.

Citing an example De Silva said, “A passenger boarding in in from Heathrow airport can directly purchase a ticket to the Palaly airport”

“He will have to get down from BIA and get into a domestic flight flying to Palaly”, added the Aviation Ministry Secretary.

Cruise Ship Calls at Sri Lanka's Eastern Port of Trincomalee after 30 Years

16th November 2010, www.lankabusinessonline.com

A luxury passenger vessel, MV Le Diamant, operated by the CMA CGM shipping line, has begun calls at Sri Lankan ports following the end of the island's 30-year ethnic war.

The Sri Lanka Ports Authority said the ship called at the eastern port of Trincomalee on November 14, the first time in 30 years the harbor has got a cruise call.

The vessel also called at the ports of Galle on the south coast and Colombo, on the west coast.

The cruise ship, which has a capacity of 112 cabins, is one of five luxury cruise ships owned and operated by CMA CGM Group's cruise arm Compangnie de Ponant.

CMA CGM is the world’s third largest container shipping line.

The SLPA said the line's local agent, CMA CGM Lanka, a subsidiary of the Hayleys conglomerate, had lobbied for the start of cruise calls with its French principals.

The ship was the first cruise liner to call three ports in the country on the same voyage.

Its second voyage is planned for May 2011.

Sri Lanka's Eastern Port Trincomalee, A Best Place for Ocean Thermal Energy (OTEC)

13th November 2010, www.lbo.lk

Sri Lanka is considering OTEC, or ocean thermal energy conversion, in the eastern deep-water harbour of Trincomalee as part of a renewable energy drive, Minister of Power and Energy Champika Ranawaka said.

"We're trying to promote renewable energy," he told a forum of exporters organised by the National Chamber of Exporters to discuss the island's future power plans.

"Trincomalee is one of the best places for OTEC and we're now exploring its possibilities," Ranawaka said.

OTEC is an energy technology that converts solar radiation to electric power using the ocean's natural 'thermal gradient' - temperature differences between different layers of water in the sea - to generate power.

Tropical waters close to the equator with narrow continental shelves and steep offshore slopes and relatively smooth sea floors are considered good locations for OTEC.

Trincomalee, a natural harbour with a deep trench, has long been considered a potential site for OTEC but the island's 30-year ethnic war which ended last year had held up plans to exploit its potential.

10 Leading Fund Management Companies Explore Investment in Sri Lanka. Avendus, Edelweiss, General Atlantic and Morgan Stanley among Them

19th September 2010, www.thebottomline.lk

Heads of more than 10 leading fund management companies in the international financial sphere will be in town from tomorrow to explore possibilities in investing in Sri Lanka.

The delegation consists of Avendus Capital’s MD Nikil Kapadia, Edelweiss Capital’s MD Shankar Raman, General Atlantic’s MD Abhay, ISS Shipping’s MD Eddie Filus, a representative from Morgan Stanley Infrastructure, RBC Capital Market’s Country Head for India Akhauri Sinha, RBC Capital Markets MD William Kostoff who is also the head of Global Equities, T A Associates’s MD Naveen Whadera, and MD of WL Ross Ranjeet Nabha.

A workshop titled ‘Sri Lanka Unveiled-Importing Wealth’ will also be held from Monday (tomorrow) to Wednesday with the participation of the delegates and the event is organised by the Royal Bank of Canada and the Thani Group in collaboration with the BOI, Aimlight, and Business for Peace Alliance.

According to the organisers of the workshop, the delegation has around US$ 80 billion at their disposal. Sri Lanka, currently, has a Foreign Direct Investment flow of US$ 0.6 billion.

The Tuesday session of the workshop is scheduled to be held in Trincomalee as the delegation is expected to visit there and hold discussions with the Trancomalee Chamber of Commerce. In the evening, the delegation will be flown from Trincomalee to Hambantota to hold discussions with the Hambantota Chamber of Commerce.

Apart from this delegation, representatives of several other fund managing companies such as Actis Group, Bain Capital, Carlyle Group, Cordiant Capital, and Providence Equity have sent their representatives to Sri Lanka to have a feel on the Colombo Stock Exchange which was rated one of the best performing markets in the world, The Bottom Line learns.

“They have already met key officials of several blue chips which are mainly into leisure and logistics and they have a list of 18 selected blue chips under the radar for possible investments,” a market source who did not want to be named said.

Even though Sri Lanka was rated one of the best performing markets since the end of a bloody civil war the country suffered, an element of doubt had been created by the exiting of foreigners from the market on a regular basis.

Several foreign funds which announced their interest over both private and public equity in Sri Lanka at the beginning were also seen more or less silent embedding this element of doubt to the minds of the investors.

According to analysts, the arrival of a delegation of this calibre will certainly counter this element of doubt to some extent and more foreign interest will seep through to the country as well as to the stock market.

Sri Lanka was recently placed ahead of Russia, India and China by the Fobes magazine in its ‘Countries for Business’ list and Standard and Poor increased the country’s credit rating to B+ from B.