DISCUSSIONS STILL ON WITH SRI LANKA ON COLOMBO PORT PROJECT: MEA

India said on Friday that discussions are still being held with Sri Lanka over Colombo’s unilateral decision to scrap a trilateral agreement for developing a key port terminal and instead hand it over to a state-run entity.

The Sri Lankan government’s sudden decision this month to run the East Container Terminal (ECT) of Colombo port as a fully owned operation of the Sri Lanka Port Authority (SLPA) didn’t go down well with India and Japan, which had signed a trilateral agreement in 2019 on jointly developing the terminal.

“India’s interest for participation in the Colombo port is a long-standing one since most goods handled there are from and to India,” external affairs ministry spokesperson Anurag Srivastava told a news briefing.

“We had, in principle, agreement from the Sri Lankan government in this regard. The current government has, however, expressed a preference in engaging investors directly. I understand discussions are still underway,” he said.

India responded to the latest developments in the ECT project by calling on Sri Lanka to abide by the trilateral agreement, while Japan described the Sri Lankan government’s unilateral decision as “regrettable”.

Sri Lankan leaders and ministers have been quoted by the country’s media as saying that India and Japan will be allowed an opportunity to develop the West Container Terminal at Colombo port instead of ECT. Indian officials, however, say that no formal proposal has been received from Colombo in this regard.

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