Magampura Port loan repayment; discussed in detail by COPA
16-Sep-2025.
The issue of non-repayment of a loan obtained from a private bank by the Magampura Port Management Company was extensively discussed by the Parliamentary Committee on Public Accounts (COPA), which also presented recommendations.
The discussions took place on September 10 under the chairmanship of MP (Dr.) Nishantha Samarasinghe, while examining the Auditor General’s reports for the Sri Lanka Ports Authority for 2022 and 2023, as well as its current performance.
It was revealed that the Magampura Port Management Company, established on July 5, 2013, began operations as a fuel distributor at the Hambantota Port with authorization from the Ceylon Petroleum Corporation, and in 2014 obtained a USD 24 million loan from a private bank with a corporate guarantee from the Ports Authority.
However, by December 2023, USD 18.82 million (LKR 6,836 million) of the loan remained unpaid. In 2019, the bank had filed two lawsuits against the company and the Ports Authority to recover the loan.
Officials present stated that a complaint had been lodged with the Commission to Investigate Allegations of Bribery or Corruption, and investigations are ongoing. They also noted that since June 2022, a liquidator has been appointed, and the process of closing the company is underway.
The committee, however, pointed out that closure alone was not sufficient and emphasized that the Ports Authority had failed to fulfill its responsibilities. The committee recommended expediting the loan repayment process.
It further recommended conducting an internal inquiry, taking disciplinary action, and establishing a mechanism for proper oversight of the internal audit division, and requested a full report on these matters.
Additionally, the committee discussed the Ports Authority’s joint venture projects.
The meeting was attended by MPs Dayasiri Jayasekara (Attorney-at-Law), T.V. Shanaka, M.K.M. Aslam, Nilanti Kottahachchi (Attorney-at-Law), Dilith Jayaweera, Lt. Commander (Retd.) Prageeth Maduranga, Thilina Samarakkone, Samanmalee Gunasinghe, Sunil Rajapaksa, Chandima Hettiarachchi, and Dinesh Hemanta.
