Sri Lanka says India and Japan will invest in the East Container Terminal of Colombo Port
Sri Lanka’s President Gotabaya Rajapaksa has said that several companies from India, Sri Lanka and Japan will invest in the East Container Terminal at the Colombo Port.
The state operated Sri Lanka Port Authority (SLPA) would have a majority stake in the proposed investment project.
The President had explained that India accounted for 66 percent of the transhipment at the Colombo Port.
“Under the investment programme, the administration of the terminal and 51 percent of the shares will be owned by the Sri Lanka Ports Authority,” President has been quoted as saying in the local media.
“Several Indian, Japanese and Sri Lankan companies have come forward to invest in the remaining 49 percent.”
India’s Adani Ports and Special Economic Zone Ltd is expected to be the party nominated by India under an agreement originally signed during the last administration.
Meanwhile, the Japanese Embassy in Colombo has told the local media that negotiations on a joint venture to develop the East Container Terminal with India and Sri Lanka were currently ongoing.
OSL take:
Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have made it a maritime hub in the South Asian region. China’s Belt and Road Initiative has also placed much importance in Sri Lanka. The move to develop the East Container Terminal as a tripartite agreement between Sri Lanka, India and Japan would further develop Sri Lanka’s maritime hub status in the Indian Ocean. All this will further expand business/investment opportunities in Sri Lanka’s ports, shipping and logistics sectors. Foreign businesses/investors could therefore confidently explore business opportunities in these sectors.
| Article Code : | VBS/AT/20210127/Z_4 |