13 December, 2017

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Rs 20 Billion Plus Deal For Unnecessary Russian Vessel To Be Inked This Week

The Yahapalana Government is set to go ahead with the deal to buy a Russian-built Gepart 5.1. Offshore Patrol Vessel (OPV) for the Navy costing US $ 135 million or more than Rs 20 billion this week.

President Sirisena – Minister Difence

This purchase goes against recommendations from all authoritative sources and in particular serves no meaningful purpose given the Navy’s current requirements.

It was widely rumored that the former Navy Chief Travis Sinniah’s tenure was not extended because he was dead against this purchase.

The Sunday Times revealed that ‘the cost of the OPV at US$ 135 million would come from un-utilized credit from a facility issued by Russia on February 10, 2010’.

Although the credit line lapsed in 2015, the Government has persuaded Russia to re-validate the US$ 135 million for five years and a Russian bank has extended a loan for the amount at an annual interest rate of four per cent, the Sunday Times further reported. In September this year, the Cabinet of Ministers approved a recommendation from President Maithripala Sirisena, as Minister of Defence, for the purchase of this vessel. He said in a Cabinet Memorandum that “The Sri Lanka Navy has a requirement of this kind of a ship and already given the recommendations to purchase this.” Defence sources say the purchase of more ships from two different countries is now on the cards.

A delegation from Rosboronoexport, the monolithic state-owned enterprise for defence exports, will arrive in Colombo for this purpose. The delegation is to be headed by Alexandrovich Mikheev a close friend of Russian President Vladimir Putin. The Sunday Times claims that the delegation is expected to hold talks on other Russian defence equipment on offer.

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Latest comments

  • 7
    1

    Most of these chaps who are commenting do not understand.
    The warship is to control the aava giya group.

  • 8
    0

    Maintenance of this old warship will be costly – apart from cost, refurbishing and reequipping the ship with munitions, food every week, fuel, additional on-duty pay etc.
    Somebody has got a “cut” on this deal, as usual.

    • 6
      1

      Yes, justice! This is how things r happening in Sirisens’s Siri Lanka.I hav e to say that majority Sri Lankans are BxxxdY fools.The day before the nominations were submitted for 2015 Presidential Elections,SIRISENA THE BIGGEST COUP MASTER,HAD AAPPA WITH MR,WHO SAVESD OUR COUNTRY FROM THE TAMIL LTTE KILLERS, WHO WITH BATALANDA MASSACRE MASTERMIND RANIL,SUBMITTED HIS NOMINATION PAPERS TO CONTEST AGAINST HIS OWN MASTER,THE GREAT MR !!! Our citizens believed WHAT THEY UTTERED AT THE ELACTION MEETINGS AND VOTED FOR THE COUP-MASTER SIRISENA THINKING THAT SRI LANKAN POPULATION WILL BE HIGHLY BENEFITTED!!!! What has happened now? Cost Of Living, HOW MUCH IS THAT??? Its too late to realise the mistake made by these FOOLISH SRI LANKANS !!! But, one thing is clear! Sira,Ranil and the band wagon WILL GET THE PUNISHMENTS ACCORDING TO THE “LAW OF NATURAL JUSTICE” very soon!

  • 5
    0

    Most of the commenters are against the purchase. How come our representatives (aka the MPs) are very quiet?

  • 3
    0

    What is the world market price for a naval vessel such as this ? The difference between the market price & the price paid would be the commission. The commission was the only consideration for this purchase. Who gets to divide the spoils.

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