The Government of Sri Lanka is working with the Asian Development Bank (ADB) and the World Bank to create a public private partnership (PPP) framework in the country.

This framework would lay out clearly the policy, legal and institutional aspects of contracting PPPs.

An official of the government recently said that It is necessary to set up a framework to have stat-owned enterprises (SOEs) managed and operated as efficient commercial enterprises, based on prudent commercial principles, ensuring adequate returns equal to or more than the comparable commercial enterprises in the private sector.

Prime Minister Ranil Wickremesinghe in his forthcoming presentation of the Five-Year Plan will set out a road map for SOE reform and the disposal of non-strategic state assets. Various options are also being considered for Sri Lankan Airlines and for the Port of Hambantota and Mattala Airport.

Sector-specific PPP Initiatives in the country include the US$500 million South Container Terminal PPP of the Colombo Port Expansion Project, in which the Asian Development Bank advised Sri Lanka Ports Authority in developing a bankable PPP structure and organizing a competitive tender process to select the private sector partner; or the US$ 240 million Queen Elizabeth Quay, whose expansion will pass from a capacity of 250,000 to 1.1 million TEUs per year.

The government has also earmarked several highways which will be financed and operated by the private sector.