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Viability of Lanka’s C’wealth Games bid questioned / There are innovative ways of raising funds — Cabraal

The Island

UNP lawmaker Harin Fernando wants the ruling UPFA coalition to review, what he called, a high-flying project to host the Commonwealth Games in 2018 at Hambantota. Responding to criticism, Central Bank Governor Ajith Nivard Cabraal told The Island, that there were innovative ways of raising funds required for the project. Cabraal emphasized that the government was confident that a public-private sector partnership could take on the challenge.

In an interview with The Island yesterday, MP Fernando said that the economy couldn’t sustain the project, which would cost the taxpayer billions of rupees. He said that during presentation of the 2011 budget on Monday (Nov. 22) President Mahinda Rajapaksa had admitted the difficulty in increasing the salaries of public servants by 100 rupees a month for want of adequate funds. Against the backdrop of such difficulties, it would be foolish to undertake an assignment as big as hosting the prestigious Commonwealth Games. Sri Lanka is competing with Australia’s Gold Coast.

The Badulla District MP urged the government to re-examine the proposal and, if necessary, consult those responsible for the recently concluded New Delhi Games. Quoting wire services and the Indian media, MP Fernando said that India had had to spend about $ 15 billion, though it estimated a $ 412 million price tag.

The UNPer said that waste, corruption and irregularities involving the New Delhi Games had forced the government to call in the Central Bureau of Investigation (CBI) to conduct a probe.

The MP pointed out that the CBI had already filed lawsuits against two London-based companies involved in the Games. Some of those allegedly involved in fraudulent deals had been arrested, the MP quoted the international press as saying.

Sri Lanka made a surprise bid on March 31, 2010 in line with the government’s decision to develop Hambantota as a sports hub. Hambantota International Cricket Stadium, which is nearing completion, is scheduled to host three matches in the 2011 Cricket World Cup. A new motor racing track is also in the pipe line.

MP Fernando said that the Opposition appreciated efforts to promote the country in the aftermath of the war. But the government should always examine the viability of mega projects before taking them on to prevent any adverse impact on the economy.

He pointed out the government had gone ahead with the 11th International Indian Film Academy (IIFA) awards in Colombo last June in spite of strong criticism from the Opposition. “But when compared with the IIFA”, the MP pointed out the cost of Commonwealth Games would be exorbitant. He expressed concern that the proposed project could turn out to be a money spinner for those in power. Referring to the ongoing controversy in India over widespread fraud and misappropriation of funds by some relatives and friends of Indian officials, the UNPer said that Sri Lanka wasn’t free from mega corruption in sports deals, particularly in cricket.

President Rajapaksa in his Budget presentation referred to Sri Lanka’s bid to host the Commonwealth Games in 2018. He proposed the establishment of a National Sports Development Fund as a public-private partnership project to promote infrastructure facilities and attract international sports events. The President proposed to allocate 10 per cent of income from the National Lottery and a new levy on the tourism industry to this fund, while urging the private sector to join hands with the government to attract major international events.

President Rajapaka replaced Sports Minister C. B. Ratnayake with Kandy District MP Mahindananda Aluthgamage at Monday’s Cabinet reshuffle.

MP Fernando said that the government could end up raising massive loans at commercial rates to finance the Hambantota project.

The UNPer also emphasized the importance of having a meticulously planned programme to improve performances of Sri Lanka’s sportsmen and sportswomen. All host countries of the Commonwealth Games had always performed well and Sri Lanka should be prepared to meet that challenge, MP Fernando said.

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