Colombo, May 29 (BAN/ AD): Deal has been signed with India and Japan to develop a deep-sea container terminal. The three countries will jointly build the East Container Terminal at the Port of Colombo.
Around 70 % of Colombo Port’s transshipment business is India related said Port Authority (SLPA) while Japan had cooperated since the 1980s to develop the port’s container terminals. Full ownership is retained by SLPA. The Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51 per cent stake, and the joint venture partners purchase a 49 per cent stake.
SLPA said in a statement “As a hub of the Indian ocean, the development of Sri Lanka and openness of its ports are of great importance. Colombo port is the leading port in region. This joint project reflects the long standing goodwill and cooperation among the three countries.”
India, the US and several other countries have been highlighting the concerns over the BRI projects which may leave a number of smaller countries in debt traps.