Dr Sarath Obeysekera

Subject: Urgent actions to develop marina, repair & maintenance (R&M) and leisure-yacht infrastructure at Galle and strategic fishery harbours (including Modera) to capture high-value nautical tourism and marine services export opportunities.

Prepared by: Dr Sarath Obeysekera 

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Executive summary

Sri Lanka has an immediate, realistic opportunity to develop a world-class cluster for luxury leisure craft, yacht repair & maintenance (R&M) and nautical tourism anchored on Galle Harbour and strategic fishery harbours (Modera, minor marinas). Over 15 years of advocacy has not translated into delivery. The result: lost investment, missed exports and jobs, and underused port assets. With relatively modest public-private investment, clear governance, and an immediate RFP for Galle marina development plus pilots at Modera, Sri Lanka can capture regional yacht traffic and service chains that could realistically generate hundreds of millions (and scale toward multi-billion dollar) annual GDP contribution over a decade, while creating skilled jobs, stimulating shipyard growth, and growing tourism receipts.This brief sets out: the current problem, strategic rationale, immediate actions (including an RFP template and governance model), financing and legal clarifications required, and a pragmatic 24-month implementation roadmap.

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Problem statement

• Inaction despite clear demand. The Chamber and advisory groups have promoted marina and R&M development for years; however, political and administrative inertia persists. Ministers cite legal disputes and governance issues while strategic windows (seasonal yacht movements, regional cruising circuits) are lost.
• Blocked land/asset use at Galle. Key infrastructure (e.g., slipways, berths) remains underused or physically obstructed (scrapped barge, derelict equipment), and SLPA and other bodies have not acted decisively to clear and reassign for productive use.
• Missed economic opportunity. The global superyacht and leisure boating market is expanding; a functioning regional marina and R&M cluster could attract refit, repair and provisioning work and high-spend visitors, multiplier effects include hospitality, chandlery, marine engineering and training.
• Fragmented governance & unclear procurement. Lack of a clear procurement mandate (no RFP issued) and competing ownership/interest claims (Ministry of Fisheries, SLPA, private claims) block investor confidence.

Strategic case & benefits

• Export earnings and FDI: Yacht refits and high-end marine services are high value per tonne of input. Each medium refit can inject hundreds of thousands to millions USD locally; servicing dozens of vessels annually is significant revenue.
• Jobs & skills: Creation of skilled jobs (marine welding, composites, electrical, upholstery, marina ops), apprenticeship pipelines and vocational curricula (link to Fabweld / IDM style programs).
• Tourism uplift: High-spend yacht crews/owners and transient visitors increase occupancy at premium hotels, restaurants and tours — Galle’s cultural/destination strengths amplify the yield.
• Cluster advantage: A coordinated cluster (Galle hub + Modera mini-marina network) spreads capacity, reduces seasonal pressure, and leverages local shipbuilding and repair capabilities.

Immediate recommended actions (high priority)

1. Committee of Export Ministers: issue an instruction to tender (RFP) within 30 days to develop Galle Marina (shortlist PPP / concession, minimum standards). This directive should clarify the government’s procurement intent and remove administrative log-jams.
2. Form an Empowered Project Board (EPB) co-chaired by EDB and the Chamber (plus SLPA, Ministry of Fisheries, Galle Municipal/Provincial rep, legal advisor). EPB will oversee RFP, site clearance, environmental review and contract award.
3. Immediate site remediation: Instruct SLPA/Ministry to clear obstructive scrap (e.g., removed steel barge) within 60 days under emergency public works, with costs recoverable from successful concession or via penal notices.
4. Issue a two-stage RFP for Galle Marina (stage 1: qualifications & concept; stage 2: detailed proposals & bidding). Include clear deadlines, evaluation criteria and a transparent dispute resolution clause.
5. Pilot micro-marinas at Modera and 2 fishery harbours under license to private operators under short concession terms to demonstrate viability and quick wins.

Suggested RFP outline (high level)

• Project type: Design, finance, build, operate (DFBO) or long-term concession (20–35 years) for marina + R&M yard and adjacent services.
• Scope: Berths (up to 50 multi-size), dedicated refit slip(s), hardstanding, boat lift / travelling gantry, chandlery and provisioning centre, waste oil & hazardous waste handling, fuel berth, security & customs zone for yacht clearances.
• Mandatory standards: MARINA & ISPS security, environmental management plan, waste reception facilities, greywater/sewage handling, firefighting, noise control, local employment and apprenticeship quotas.
• Evaluation criteria: Technical experience (yard/refit), financial capacity, environmental & social plan, local content & skills program, timeline, concession fee / revenue share.
• Legal clarity: Prior agreement between SLPA and Ministry of Fisheries on land/asset control or clear conveyance for the concession area.

Financing & incentives

• Public land + concession model to reduce upfront land cost for private developer.
• Soft support: EDB / BOI fast-track permits, tax breaks for initial 5 years for refit capex, duty concessions on imported specialised refit equipment for first 3 years.
• Blended finance: Use EDB guarantees, concessional loans (local development bank) + private equity.
• Donor grants for training: Seek technical assistance from international marine industry bodies or development partners for workforce training.

Legal & regulatory fixes

• Rapid dispute resolution mechanism: central legal cell to triage historic legal cases that block port assets; impose strict timelines to prevent indefinite delays.
• Clarify planning vs licensing for short-lets and R&M operations; provide single window at EDB/SLPA for approvals.
• Environmental compliance: Ensure baseline EIA scoping and wastewater management rules for refit yards.

Risk mitigation

• Environmental risks: Strict waste and antifouling management, licensed disposal contractors.
• Political risks: EPB cross-party oversight, public transparency, contract arbitration via ICC/LCIA clause as needed.
• Commercial risks: Stage gated milestones with performance bonds; step-in rights for government.

This 24-month implementation roadmap (summary)

• Month 0–1: Cabinet/Committee instruction to tender; form EPB.
• Month 1–3: RFP published (stage 1), site clearance mandate.
• Month 3–6: Shortlist & stage-2 RFP issued.
• Month 6–9: Evaluation, selection, contract signing.
• Month 9–18: Construction of initial berths, hardstanding, boat lift.
• Month 18–24: Commissioning, marketing to regional yacht networks; launch Modera pilot marinas simultaneously.

Key performance indicators (first 3 years)

• Berths commissioned (number) — target: 20+ by year 2.
• Annual refits completed — target: 30+ medium refits by year 3.
• Jobs created (direct & indirect) — target: 500+ by year 3.
• Training completions and apprenticeships — target: 200 certified technicians.
• Export earnings / local revenue from marine services — baseline reporting from year 1.

Closing call to action

The Chamber should urgently request a meeting of the Committee of Export Ministers with a concise resolution: approve RFP for Galle Marina within 30 days; form EPB; instruct site clearance. Attach this brief, an economic-impact memo and a short investor pack demonstrating demand from regional yacht agents and shipyards. The photographic evidence of existing idle capacity (attached image) underscores the lost value and urgency.

Regards

Dr Sarath Obeysekera