Sri Lanka’s President announces joint venture with India’s Adani Group to develop Colombo Port’s ECT - Opportunity Sri Lanka
Sri Lanka’s President announces joint venture with India’s Adani Group to develop Colombo Port’s ECT

Sri Lanka’s President announces joint venture with India’s Adani Group to develop Colombo Port’s ECT

Sri Lanka’s President Gotabaya Rajapaksa has assured trade union representatives of the Colombo Port that ownership of the East Container Terminal (ECT) will be retained by the Sri Lankan Government while a 49% stake will be held by India’s Adani Group, the President’s Media Division (PMD) has said in a statement.
The former Sri Lankan government had signed a Memorandum of Understanding (MoU) with India and Japan to jointly develop the terminal utilising a US$ 500 million loan from Japan.
However, President Rajapaksa has pointed out that after the present government had negotiated the contract with India, it was possible to reach an agreement to retain 51% of the ownership and the control of the Terminal under the Sri Lanka Ports Authority (SLPA).
The President has reportedly emphasised that he would not allow any harm to befall the sovereignty or independence of the country when investments are arranged.
The President has made these remarks during a discussion at the Presidential Secretariat on the ECT of the Colombo Port upon a request by Trade Unions.
According to the President, the ECT development was planned after reviewing all factors including the regional geopolitical concerns, sovereignty of the country, revenue and employment generation potential.
President Rajapaksa has explained that the ECT will be “sustainably developed” under the investment programme and India would contribute 66% of the Colombo Port’s transshipment operations, while 9% is to Bangladesh and the rest to other countries.
The President has further noted that the plan was to develop the terminal as a project that has 51% ownership by the Government of Sri Lanka and the remaining 49% as an investment by India’s Adani Group and other stakeholders.

OSL take:

The joint venture between Sri Lanka and India will see the development of the ECT at Colombo Port. Sri Lanka is working towards achieving maritime hub status in the Indian Ocean region. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country will undoubtedly help Sri Lanka become a maritime hub in the South Asian region. This has created many business/investment opportunities in Sri Lanka’s ports, shipping and maritime sectors. Foreign businesses/investors could confidently explore business opportunities in Sri Lanka’s ports, shipping and maritime sectors.

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Article Code : VBS/AT/20210119/Z_2

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