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No final decision on India’s involvement in Colombo terminal: Rajapaksa
Why it is in news?
- A year after the previous Sri Lankan government signed an agreement with India and Japan to jointly develop the East Container Terminal (ECT) in Colombo, Sri Lankan Prime Minister has said “there is no final agreement” on the project.
More on news:
- Development of the ECT has remained contentious in Sri Lanka, with nationalist groups objecting to any “foreign involvement” in running “national assets”.
- Under this project Sri Lanka Ports Authority was to retain 100% ownership, a jointly-owned Terminal Operations Company — 51% stake with Sri Lanka, and 49% with India and Japan — was to run the terminal.
- Over 70% of the transhipment business at the strategically located ECT comes from India.
- The ECT is adjacent to the Colombo International Container Terminal, which is a joint venture between China Merchants Port Holdings Company Limited and the Ports Authority, with the Chinese company holding 85% stake.