Public -private partnerships for infrastructure development in Sri Lanka

Abstract

Public- Private Partnerships (PPPs) is becoming a popular investment model since late 1980s and 1990s in the world. PPPs in the delivery of public services have become a phenomenon which is spreading around the globe and generating great interest among governments, investors and other key project stakeholders. PPPs avoid the often negative effects of either exclusive public ownership or outright privatization. This is seen as a win-win situation for both public and private entities where they undertake large budget projects. This balanced approach is especially welcomed in public services which touch on every human being's basic needs & economical development of a country. Basically in this research, it is attempted to address three main objectives, which are to identify the current PPP coverage on infrastructure projects in Sri Lanka, to identify current deficiencies in PPP practices and areas which resist PPP being an attractive investment model in infrastructure developments in Sri Lankan context and to propose an improved PPP framework/model that can be use effectively and address the identified problems in infrastructure developments in Sri Lanka. (Based on Indian PPP framework) Based on theoretical framework in this research, a structured questionnaire was introduced for collecting data. Then, the data set has been evaluated using Likert Scale and giving weights for that and the total percentage of score. To get the maximum benefit from PPPs to a country, there are three main needs that motivate the governments to encourage into PPPs for develop infrastructures, Those are, first attract private capital investment, secondly increase efficiency and use available resources more effectively, thirdly reform sectors through a reallocation of roles, incentives, and accountability, better customers service, employee morale, transfer of technology and training for the people. In contrast, the Indian context/ framework of PPP practice has been compared against the deficiencies in the local PPP set up that is to suggest improvements to the Sri Lankan PPP framework