Key Points:
- On Tuesday, India said it expected Sri Lanka to abide by an agreement on the trilateral development and operation of a key port terminal in Colombo.
- The Sri Lankan government has been pressurized by the labour unions, which are opposed to a joint venture with Indian and Japanese investors having a 49% stake in the ECT.
- On Monday, its cabinet decided to run the facility as a fully- owned operation of state-run Sri Lanka Port Authority (SLPA).
- Responding to the move, India asked Lanka to stand by the commitment and Japan termed it as a ‘regrettable’ decision.
On Tuesday, India said it expected Sri Lanka to abide by an agreement on the trilateral development and operation of a key port terminal in Colombo. This was after the Rajapaksa government decided to hand over the facility to a state-run body. In simpler words, to opt out from the main treaty with India and Japan.
“As is well known, the governments of India, Sri Lanka and Japan had signed a memorandum of cooperation in May 2019 to develop and operate the East Container Terminal of Colombo Port in a trilateral framework,” External Affairs ministry spokesperson Anurag Srivastava said at a media briefing.
The opt out now marks a twist in the project that the three countries signed. The Sri Lankan government has been pressurized by the labour unions, which are opposed to a joint venture with Indian and Japanese investors having a 49% stake in the ECT.
On Monday, its cabinet decided to run the facility as a fully- owned operation of state-run Sri Lanka Port Authority (SLPA).
During a meeting with labour unions, Prime Minister Mahinda Rajapaksa said he had already announced that the ECT “will not be handed over to any foreign country or institution”
Responding to the move, India asked Lanka to stand by the commitment and Japan termed it as a ‘regrettable’ decision.
“We sincerely believe that the development of infrastructure in Sri Lanka, in areas such as ports and energy, with foreign investment from India and Japan will be a mutually beneficial proposition,” the commission said.
