Sri Lanka opts out of port deal with India
PORTS & SHIPPING

Sri Lanka opts out of port deal with India

In what is being seen as a setback for India, the Sri Lankan government, which is facing the threat of nationwide protests against port privatisation, backed out of an agreement signed by the previous regime in 2019 for Japan and India to develop the East Container Terminal (ECT) at the Colombo port with Adani Group as an investor.

As an alternative to the ECT project, Sri Lanka offered India another undertaking to build the West Container Terminal (WCT) at the same facility on a Public Private Partnership model along with Japan.

The ECT was tagged as a priority project for India by External Affairs Minister S Jaishankar during his visit to Colombo last month.

At a meeting with representatives of port trade unions last month, President Rajapaksa had said that the plan was to develop the ECT as an investment project with 51% ownership to be held by the Sri Lanka government and 49% as investment by the Adani Group and other stakeholders.


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


Make in Steel 2021

24 February 

Click for event info


As per estimates, over 70% of business at Colombo port is from ships in transit to the Indian coast, making it vital for Sri Lanka too. Incidentally, the Adani Group is also developing a transhipment port at Vizhinjam near Thiruvananthapuram in Kerala, which is being developed primarily to wean away India-bound trans-shipment traffic from Colombo.

The ECT project was deemed important for India, primarily due to security reasons as the China Merchants Port Holdings Company holds 85% stake in the Colombo International Container Terminal (CICT), which is near the ECT.

Image Source

In what is being seen as a setback for India, the Sri Lankan government, which is facing the threat of nationwide protests against port privatisation, backed out of an agreement signed by the previous regime in 2019 for Japan and India to develop the East Container Terminal (ECT) at the Colombo port with Adani Group as an investor. As an alternative to the ECT project, Sri Lanka offered India another undertaking to build the West Container Terminal (WCT) at the same facility on a Public Private Partnership model along with Japan. The ECT was tagged as a priority project for India by External Affairs Minister S Jaishankar during his visit to Colombo last month. At a meeting with representatives of port trade unions last month, President Rajapaksa had said that the plan was to develop the ECT as an investment project with 51% ownership to be held by the Sri Lanka government and 49% as investment by the Adani Group and other stakeholders.4th Indian Cement Review Conference 202117-18 March Click for event infoMake in Steel 202124 February Click for event info As per estimates, over 70% of business at Colombo port is from ships in transit to the Indian coast, making it vital for Sri Lanka too. Incidentally, the Adani Group is also developing a transhipment port at Vizhinjam near Thiruvananthapuram in Kerala, which is being developed primarily to wean away India-bound trans-shipment traffic from Colombo. The ECT project was deemed important for India, primarily due to security reasons as the China Merchants Port Holdings Company holds 85% stake in the Colombo International Container Terminal (CICT), which is near the ECT. Image Source

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?