• Over 300 contracts related to 35 mega projects were suspended last year.
• 37 projects showed no physical progress in the last quarter of 2023.
• There's a lack of project data and accountability for delays, as noted by the PMMD and IMF.

Sri Lanka's Project Management and Monitoring Department (PMMD) revealed alarming statistics regarding mega projects, including over 300 suspended contracts linked to 35 projects last year. Contractors demanded Rs. 2.3 billion in compensation for just nine of these projects, with potential claims looming for another 22. The report noted that 37 projects showed no physical progress in the last quarter of 2023, and 17 out of 33 projects with foreign disbursements faced stagnation. Furthermore, delays affected 41 other projects due to poor contractor performance. The International Monetary Fund's Governance Diagnostic Assessment emphasized recurrent issues, including delays in budget allocation and land acquisition. It also highlighted a lack of project data and accountability for delays. Specific projects, like the Uma Oya Multipurpose Development Project, faced significant delays despite multiple extensions. Urgent measures are needed to improve time management, contractor performance, and project oversight to prevent further setbacks.

Mega projects in crisis: More than 300 contracts suspended | The Sunday Times