Press "Enter" to skip to content

Sri Lanka Revives Port Deal With India, Japan

Sri Lanka has insisted its ports is not going to be used for any army functions. (Representational)

Colombo:

Sri Lanka’s President Gotabaya Rajapaksa on Wednesday introduced the revival of an Indian and Japanese funding venture to develop a deep-sea terminal in Colombo harbour, subsequent to a controversial $500-million Chinese-run container jetty.

A tripartite deal by Sri Lanka’s earlier authorities had been on maintain amid commerce union resistance, however Rajapaksa stated the East Container Terminal (ECT) would proceed.

Approval got here after reviewing “regional geo-political concerns,” Rajapaksa’s workplace stated, a reference to India’s suspicion of China’s function on the similar port.

The terminal shall be developed with 51 % possession by Sri Lanka’s authorities and the remaining 49 % as an funding by Adani Group and different stakeholders together with Japan, officers stated.

The state-run Sri Lanka Ports Authority (SLPA) entered right into a memorandum of cooperation in May 2019 with Sri Lanka, India and Japan to develop the ECT earlier than Rajapaksa got here to energy in November 2019.

The deep-sea jetty is positioned subsequent to the Colombo International Container Terminal which is 85 % owned by China and was commissioned in 2013.

The SLPA owns the remaining 15 %.

India lodged protests when Chinese submarines made unannounced visits to the Chinese-managed terminal in 2014.

Newsbeep

Since then, Sri Lanka has refused permission for additional submarine calls.

Nearly 70 % of transhipment containers dealt with by Colombo was Indian export-import cargo.

In December 2017, Sri Lanka, unable to repay an enormous Chinese mortgage, handed over one other deep sea port within the south of the island to a Beijing firm in a deal that raised considerations at dwelling and overseas.

The $1.12 billion deal, first introduced in July 2016, allowed a Chinese state firm to take over the Hambantota port, which straddles the world’s busiest east-west delivery route, on a 99-year lease.

India and the United States are each involved a Chinese foothold at Hambantota, 240 kilometres (150 miles) south of Colombo, might give it a army naval benefit within the Indian Ocean.

Sri Lanka has insisted its ports is not going to be used for any army functions.

Be First to Comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    %d bloggers like this: