Sri Lanka Pushed India out of East Terminal Project

On 3rd February, 2021, the Sri Lankan government revoked a 2019 agreement with India and Japan to develop the strategic East Container Terminal (ECT) at the Colombo Port.

Background

• Sri Lanka, Japan and India signed an agreement to jointly develop the East Container Terminal at the Colombo Port in 2019.
• The MoC stated that the Sri Lanka will own 51 per cent stake. India and Japan will jointly own the remaining 49 per cent. However, Sri Lanka made a unilateral decision on an existing tripartite agreement.

Reasons Cited

• Pressure from Colombo Port Trade Unions: Sri Lanka was under intense pressure because ....