Dr Sarath Obeysekera

Key unsolicited Projects Executed in 70/ 90 

• Kotmale Dam – fast-tracked with Swedish funding under Gamini Dissanayake
• Parliament of Sri Lanka dredging – awarded to Boskalis
• Sea sand dredging project – linked to Dutch funding + loans
• Canal rehabilitation – feasibility by WS Atkins
• Project management – Nippon Koei
• Execution – Keangnam Enterprises

These represent a classic 1970s–1990s model of development:

👉 politically driven

👉 externally financed

👉 consultant-led

👉 quickly executed

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 Lessons to Learn

1.  Speed vs. Process

Then:

Projects moved very fast—decisions taken at ministerial level, minimal bureaucracy.

Lesson:

• Speed is essential for development
• But lack of structured procurement can lead to:
  • inflated costs
  • poor negotiation outcomes
  • dependency on external parties

Today’s takeaway:

Create a fast-track approval system” WITH safeguards—not without them.

Unsolicited Proposals – Double-Edged Sword

Then:

Foreign companies like Boskalis brought ideas + financing.

Advantages:

• No need for government to conceive projects
• Access to technology and funding
• Quick start

Risks:

• Supplier-driven (not country-driven)
• Weak price discovery (no competition)
• Hidden long-term costs

 Lesson:

Accept unsolicited proposals—but subject them to competitive benchmarking (Swiss Challenge” model).

Foreign Funding Comes with Influence

Examples:

• Swedish funding for Kotmale Dam
• Dutch grants + loans for dredging
• Japanese and Korean firms executing canals

Reality:

Funding often tied to:

• contractors from donor country
• technology lock-in
• political alignment

 Lesson:

Diversify funding sources and negotiate from strength—not urgency.

Strong Political Champions Matter

Figures like Gamini Dissanayake drove projects personally.

Positive:

• Projects didn’t stall
• Bureaucracy was bypassed

Negative:

• Decisions concentrated in individuals
• Weak institutional continuity

Lesson:

Blend political leadership with institutional frameworks

not personality-driven development.

 Role of Consultants – Value vs Dependency

• WS Atkins (feasibility) with RDV local company 
• Nippon Koei (project management)

Observation:

• High-quality planning and execution
• But local capacity remained limited

 Lesson:

Every foreign consultancy must include:

• technology transfer
• local engineer training
• knowledge retention

 Financing Structure Matters More Than Speed

Projects were funded by:

• grants
• soft loans
• export credit

But often:

• repayment terms were not fully scrutinized
• revenue models were weak

 Lesson:

No project should proceed without a clear repayment + revenue model.

 Missed Opportunity: Build Local Industry

While foreign companies executed:

• dredging
• canals
• infrastructure

Sri Lanka did not build its own large-scale contracting capability.

 Lesson:

Every project should:

• mandate local contractor participation
• develop domestic industry (like what South Korea did)

 Strategic Takeaway for Today

If Sri Lanka wants to replicate that clock  work” speed again:

 What to Keep

• Decisive leadership
• Willingness to engage foreign partners
• Bold infrastructure vision

What to Fix

• Transparent procurement
• Competitive pricing
• Strong legal frameworks
• Local capacity building
• Debt sustainability

Final Insight

The past model worked because:

• the country was starting from a low base
• urgency justified shortcuts

But today:

 The stakes are higher

debt is heavier

geopolitics is sharper