Adani group starts construction at Colombo port

The construction of Colombo West container terminal by the Adani group has commenced on November eighth.

This will be the first Indian investment in the Sri Lankan Port sector

Chinese companies own terminals in Colombo port besides the entire port of Hambantota on a 99 year lease

The build-operate-transfer (BOT) agreement which is to remain valid for 35 years, is said to be the "largest" Indian investment ever in Sri Lanka's port history.

The state-run Sri Lanka Ports Authority will own 15 per cent, while local company John Keells will own 34 per cent interests in the joint project.

A memorandum of understanding signed with India and Japan on the development of the Eastern Container Terminal (ECT) in 2019, was withdrawn following the protest by Sri Lankan trade unions and some political parties.

However in March 2021, the Sri Lankan Cabinet granted approval for the development of the WCT through a public-private partnership (PPP) in collaboration with the SLPA and investors nominated by the Indian and Japanese governments.

With the commissioning of the Colombo west terminal, Colombo Port's capacity to handle containers will reach three million TEU a year. The terminal is expected to be commissioned in the next two years,

East coast ports,denied sufficient infrastructure, depend entirely on the Colombo port for transshipment of goods making Indian exports less competitive.

The major port at Tuticorin has become a feeder port depending completely on Colombo port for both exports and imports.