SRI LANKA, JAPAN, INDIA SIGN DEAL TO DEVELOP EAST CONTAINER TERMINAL AT COLOMBO PORT
29, May 2019
Prelims level : International Mains level : GS-II Governance, Social Justice and IR
Why in News:
- Sri Lanka, Japan and India signed an agreement to jointly develop the East Container Terminal at the Colombo Port.
- The joint initiative is estimated to cost between $500 million and $700 million. As per the agreement signed, the Sri Lanka Ports Authority (SLPA) retains 100% ownership of the East Container Terminal (ECT), while the Terminal Operations Company, conducting its operations, is jointly owned. Sri Lanka will hold a 51 per cent-stake in the project and the joint venture partners will retain 49%. Japan is likely to provide a 40-year soft loan with a 0.1 percent interest rate
- The ECT is located some 3 km away from the China-backed international financial city, known popularly as “port city”, being built on reclaimed land on Colombo’s sea front.
- India’s possible role in developing the terminal had become a major flashpoint within the government