Sri Lanka’s Colombo Port to be developed through joint venture with Japan and India
The governments of Japan, India and Sri Lanka have reportedly agreed to jointly develop the Port of Colombo
The revelation was made in Japanese media outlet, Nikkei.The project’s goals are to increase the port’s container volume and enhance marine transportation in and around South Asia, Nikkei has reported.According to the report, the deal comes as China has been using Belt and Road projects to increase its influence in the region, and with Japan aspiring to play a significant role in the area pushing its Free and Open Pacific Ocean and Indian Ocean strategy.
The three partners are to sign a memorandum of understanding by summer, and work will begin by next March.
The largest port in Sri Lanka, through which 90% of the country’s seaborne goods pass, connects Europe, the Middle East, Africa and Asia. It had traffic of 6.21 million twenty-foot equivalent units in 2017, making it Southwest Asia’s busiest port, the Nikkei report has further noted, adding that the region’s economies continue to boom and are expected bring the port to full capacity.
Accordingly, the three countries will develop the East Container Terminal, located at the south part of the Port of Colombo, which has been newly expanded.
They will deepen it and develop a facility to allow large container ships to enter, the report has stated.
Government officials from the three countries are in working-level talks and expect to agree on the scale and form of the project by summer, the report has added.
OSL take:
The joint venture to be formed between India, Japan and Sri Lanka to develop the Colombo Port is indicative of the interest shown by large economies like India and Japan on the island nation. Sri Lanka is engaged in the development and upliftment of the country’s ports and shipping sector. The government is also working towards promoting Sri Lanka as a hub in the Indian Ocean given its geographical positioning. With development partners like India and Japan, Sri Lanka’s ports and shipping sector is expected to record and impressive growth in the next few years. Given the many trade agreements and trade concessions enjoyed by the country, Sri Lanka is fast becoming business hub in the South Asian region. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/23052019/Z_6 |