Sri Lanka’s Finance Ministry has ordered line ministries not to start projects coming in the guise of Public Private Partnerships where the full cost has to be settled over time through annuities (instalment payments) in making spending plans for 2024.

Public Private Partnerships are usually expected to cover their entire expenditure through revenues, though in some cases, only a part of the infrastructure may be possible to be covered through business revenues.

In such cases the government may support with the annuities or instalment payments, for a project which are financed by the developer such as a toll road with insufficient revenues to fully cover instalment payments.