A Bus Rapid Transit Solution Could be Faster and Cheaper for Colombo, Capital of Sri Lanka - Amal Kumarage, a professor from Moratuwa University

28th March 2013, www.lankabusinessonline.com

A bus rapid transit (BRT) solution could be implemented faster and at a much lower cost while more capital intensive rail based Metro systems are built, to prevent gridlock in Sri Lanka's capital Colombo, officials said.

Amal Kumarage, a professor from Sri Lanka's Moratuwa University and an expert on transport that the share of public transport had dropped below 50 percent in Colombo from 80 percent in the late 1980s.

"So we need to do something radically different to make public transport have the appeal that will make it more attractive," Kumarage told the LBR-LBO chief executive officers forum, made up senior corporate executives in Colombo.

"We must ensure that the capacity that is needed in the future comes from quality public transport," Kumarage said.

"And where is that quality. It comes from bus rapid transit, metros. These are the technologies out there and I do not think, retrofitting and improving what we have will get us there."

The share of bus transport in Sri Lanka was expected to drop from 55 in 2011 to 41 percent in 2021, rail would be flat at 5 percent and private transport would rise from 26 percent to 38 percent.

Kumarage said Sri Lanka probably had the best transport network in Asia outside Japan in the 1950s but it weakened after that.

The state has been investing heavily in transport in recent years, but mostly in the road network roads around the country, especially rebuilding a system that was under-invested during a 30-year war.

Kumarage said the state had been investing about 3.0 percent of gross domestic product in transport and the private sector 2.0 percent, which was good.

But urban congestion cannot be solved by roads alone, Kumarage said. In congested areas like Colombo public transport should not be allowed to drop below 50 percent, based on the international experience he said.

Colombo's traffic is expected to slow down further as incomes rise and people drop low quality bus transport. Officials say there is an excess of buses in some areas.

Colombo's average traffic speed may drop to 17.4 kilometres per hour from 21.6 in 2021 and it may drop to 9.1 kilometres in 2031 unless public transport was changed.

Strategies such as congestion pricing could be introduced, which Rohan Samarajiva, head of LirneAsia, a regional policy research body, said

But before that, people needed an alternative system to use.

D S Jayaweera from the ministry of finance said authorities had devised a system to start a bus rapid transit route several years ago but it had not been done.

Kumarage said bus rapid systems in India and South America, which use special lanes had brought quick results.

The can be implemented for a lower cost and even reversed later.

Kumarage said several BRT routes could be developed in Colombo with minimal investments to clear bottlenecks. Though parts of six lane roads have been used, parts of four lane roads have been successfully converted to BRT routes he said.

Helped by the Japan International Co-operation Agency (JICA) Sri Lanka is launching a study for a transport master plan for the Greater Colombo region, with JICA being ready to finance the first section of a mass rapid transit (MRT) system.

MRT systems are however can cost 30 million US dollars or more per kilometer to build though they are very efficient at moving large numbers of people fast. Mass rail systems could be combined with BRTs.

Yunnan Vice Governor Leads China Trade Mission to Sri Lanka. Bilateral Trade was USD 2.7 Bn in 2012

27th March 2013, www.lankabusinessonline.com

A Chinese delegation led by Yunan province vice governor Ding Shaoxiang is arriving in Colombo today, which will help expand bilateral trade of 2.7 billion US dollars reached last year, the commerce ministry said.

"This visit is a strong boost to the growing Lanka-China bilateral trade," commerce and industry minister Rishad Bathiudeen said in a statement.

Bilateral trade with China rose 19.5 percent to reach 2.676 billion US dollars in 2012. Sri Lanka's exports to China was 108.12 million US dollars.

The six member delegation from Yunan will meet key officials, the ministry said.

India Relaxes Quota on Apparel and Meat Exports from Sri Lanka. Exports Reached USD 720.89 Mn in 2011-2012

27th March 2013, www.lankabusinessonline.com

India has raised a quota of Sri Lanka-made apparel and the validity of a sanitary permit for meat had been doubled giving more freedom for Indian nationals to buy goods from the island.
Free Trade Agreements were then used to progressively give freedom to the poorer people to trade.

Quotas and rules of origins were used as a compromise to give more time for powerful production lobbies to continue to make excessive some profits at the expense of the domestic consumer, allowing authorities to give some liberty to domestic consumers.

Cheaper imports leave more money in the hands of consumers, raising their living standards by expanding the ability to buy other goods and especially services, which can boost domestic output and employment.

The Indian High Commission said the apparel quota relaxation came following request made to visiting Indian commerce and industry minister in August 2012.

In January, at the 8th India-Sri Lanka joint commission meeting it was agreed to double bi-lateral trade to 10 billion US dollars in the next three years.

India said Sri Lankan exports had reached 720.89 million US dollars in 2011-2012 and from April 2012 to December 2012 Sri Lankan exports to India was 528.76 million US dollars.

Sri Lanka last year raised taxes particularly on smaller vehicles, which are bought by less-affluent consumers, which come primarily from India.

The Indian High Commission (embassy) in Colombo said, there would be no sourcing requirement for fabric for up to eight million pieces of fabric exported from Sri Lanka each year from the current five under the Indo Lanka Free Trade Agreement.

The validity of a sanitary import permit (SIP) for processed livestock products had been extended to one year from the current six months.

The high commission said on September 06, 2012, export tax for Sri Lankan made fabric was cut to 5.0 percent from 11.0 percent under the South Asia Free Trade Arrangement.

Citizens of India and Sri Lanka traded freely in ancient times and Sri Lanka was part of a 'Silk Route of the Sea' that was at time controlled by India based empires and later by European powers.

After independence from British rule and the rise of economic nationalism rulers of both countries raised trade barriers and reduced the ability of their citizens to trade freely and the entire South Asian region lagged behind the rest of the world except Africa.

Related Info :

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• Sri Lanka Exports to India up 10 fold as Indo-Lanka Free Trade Agreement Marks 10 Yrs 

Sri Lanka's Mattala Airport Starts Cargo Operations with First Shipment to Chennai, India

27th March 2013, www.lankabusinessonline.com

Sri Lanka's second international airport in Mattala, has started cargo operations, with exporters offered a 10 percent discount, state-run SriLankan Airlines said.

The first 900 kilograms of cargo made up garment accessories left for Chennai.


SriLankan Airlines said cargo from Mattala will get a 10 percent discount and carriage to Colombo was 20 US cents a kilogram.

Mattala has a 5,000 square meter terminal.

The Mattala Rajapaksa International Airport opened last week.

Sri Lanka 'Less Indebted' in 5 out of 6 Indicators - United Nations Economic Commission for Asia and the Pacific

25th March 2013, www.lankabusinessonline.com

Sri Lanka has been classed as 'less indebted' in five out of six debt indicators which assesses external debt vulnerability of a country, by the United Nations Economic Commission for Asia and the Pacific, the Central Bank said.

There have been concerns over Sri Lanka's rising commercial foreign debt, as well as sovereign guarantees.

Sri Lanka falls within to the less indebted category in when external debt is measured against exports of goods and non-factor services (122.6 percent compared to a threshold of 165 percent).

Sri Lanka's external debt service payments was 10.7 percent of exports of goods and non-factor service against a threshold of 18 percent, and external interest payments was 3.7 percent against a threshold of 12 percent.

The present value of external debt was 40 percent of gross national income against a threshold of 48 percent.

The present value of external debt to exports of goods and non-factor services was 130 percent, against a threshold of 132 percent.

But Sri Lanka fell in the moderately indebted category when external debt was measured against gross national income, which was 37 percent, higher than a threshold of 30 percent.

Sri Lanka, Asia's Next Casino Hotspot? - Forbes

17th March 2013, www.forbes.com

Sri Lanka has become one of Asia’s most promising economies in recent times, yet the potential of it’s gambling sector is only starting to gain recognition amongst international operators looking to expand their presence in Asia.

With marque casinos propping up in Macau, Singapore, and now the Philippines, there is yet to be a similar foray into India, where the relatively untapped gaming market has proven thus far to be impenetrable for foreign casino operators. Seemingly undeterred by India’s stringent gambling laws, Las Vegas Sands’ Chairman and CEO Sheldon Adelson has repeatedly expressed his desire for an Indian expansion, including an enquiry with Delhi’s Ministry of Tourism in 2008 that went unanswered. And it seems LVS isn’t the only one targeting India as both MGM Resorts International and Caesars Entertainment are said to have had preliminary partnership talks with Delta Corp., the owner and operator of several casinos in the southern state of Goa – one of two Indian states where gambling is somewhat legal.

While the big Las Vegas operators struggle to find a way into the Indian market, there may be better prospects elsewhere in the region. Enter Sri Lanka, a vibrant island nation in the Indian Ocean, opportunely situated within 4 hours flight of India’s major cities. The end of a gory civil war in 2009 has since resulted in visible increases in tourist arrivals and foreign investment, giving rise to Sri Lanka as one of Asia’s most promising economies. Yet as Sri Lanka continues to attract FDI across various other sectors, the island’s gaming market is only just starting to garner interest from foreign players as a viable gateway into India and the greater region.

Sri Lanka’s current gaming industry is interesting. Only a few small casino establishments exist in the capital city of Colombo, most of which have been in operation for the best part of 30 years, catering to a select mix of locals and tourists. In 2010, the government designated special legalized gambling zones in an attempt to attract new operators. Tax concessions have also been offered to large-scale hospitality projects seen to bring considerable investment to the country, as was given to Shangri-La’s upcoming hotel developments. With such incentives on offer, Sri Lanka appears to be finally winning the attention of major casino operators, with India’s Delta Corp. leading the way through the acquisition of developmental land on the outskirts of Colombo. Australian casino operator Crown Limited may also soon follow as it is reported that billionaire owner James Packer made a recent trip to the island to meet with government officials and explore prospects for a casino.

For the time being, gambling in Sri Lanka may be seen as a far cry from the glitz and glamour found in the mega-casinos of Macau or Singapore, but the island’s positive outlook towards gaming could be a welcoming sign for the likes of Las Vegas Sands and others seeking further expansion in Asia. With a thirst for foreign investment and a cooperative government, Sri Lanka could have the potential to follow the footsteps of what Macau has become in recent times – a $38 billion per year jackpot.

Update 2/3/13: At the time of writing this story, James Packer’s visit to Sri Lanka was reported by local media in Colombo but not confirmed. However, his visit has since been confirmed by the Sri Lankan Minister of Investment Promotion.

Australian Gaming Tycoon Bets on Sri Lanka. James Packer Scouting Sri Lanka for Potential Investments in His Global Casino Empire

27th February 2013, www.livemint.com

Australian gambling tycoon James Packer may be lining up a bet on Sri Lanka, scouting the Indian Ocean island for potential investments as he seeks to build a global casino empire.


Packer, who owns half of casino operator Crown Ltd, met with Sri Lankan ministers this week to discuss hotel and entertainment investment options, according to officials who met with him.

“They have not finalized the area and the amount they are going to invest. The government has asked them to come up with a proposal,” Lakshman Yapa Abeywardene, Sri Lanka’s minister of investment promotion, told Reuters on Wednesday. “The government proposed (for) them to invest in a large city hotel in Colombo and go to (the eastern city of) Trincomalee to look into possible investment opportunities.”

Treasury secretary P.B. Jayasundera said Packer had expressed an interest in “integrated tourism”, which typically includes hotels, casinos and other entertainment.

A Crown spokesman said the company would not comment about potential investments in Sri Lanka.
Analysts said Packer’s interest in Sri Lanka was unexpected.

“I would have thought their focus would be more with Southeast Asia rather than somewhere like Sri Lanka,” said one Australian-based gaming analyst, who declined to be identified.

However, Sri Lanka offered some potential for an early mover. “It’s probably not a bad move in some ways,” said Akshay Chopra, a portfolio manager at Karara Capital, who visited the country in December. “The Sri Lankan government is making a lot of changes, you’ve got China investing a lot of money in Sri Lanka, building a lot of infrastructure and you’re close to India and a big gaming market there.”

Packer is ranked Australia’s third-richest person with a fortune of $6 billion, according to Forbes. Last year, he cashed out of his family’s publishing and broadcasting assets for about $1 billion to concentrate on his gambling business, which span casinos in Australia, Macau, Britain and the United States.

Packer’s Melco Crown Entertainment Ltd plans to build a $1 billion casino in the Philippines in partnership with Philippines’ wealthiest man, Henry Sy.

Sri Lanka expects its economy to grow at 7 percent or more this year, fuelled by major infrastructure projects, and is targeting about $1.5 billion in foreign direct investment after missing its $2 billion target in 2012.

The country has allowed casino gambling off and on since at least the 1980s and currently has about nine properties including the Bellagio Colombo, operated by India’s Delta Corp. and unrelated to the Bellagio Las Vegas operated by MGM Resorts.