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
companies own terminals in Colombo port besides the entire port of Hambantota
on a 99 year lease
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
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.
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the Eastern Container Terminal (ECT) in 2019, was withdrawn following the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.
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.