Sri Lanka signs port deal with India, Japan

COLOMBO: Sri Lanka on Tuesday signed a deal with India and Japan to develop a deep-sea container terminal in the country that has seen increasing forays by China which has taken a strategic port on a 99-year lease that has worried New Delhi.

The three countries will jointly build the East Container Terminal at the Port of Colombo.

Sri Lanka’s Port Authority (SLPA) said that around 70 per cent of Colombo Port’s transshipment business is India related while Japan had cooperated since the 1980s to develop the port’s container terminals.

SLPA retains 100 per cent ownership of the East Container Terminal. The Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51 per cent stake, and the joint venture partners purchase a 49 per cent stake. (AGENCIES)