SRI LANKA TERMINAL WON’T BE SOLD OR LEASED
Posted on January 18th, 2021
Courtesy Port strategy.com
The East Container Terminal of the Colombo Port will not be sold or leased, Sri Lanka has confirmed.
President Gotabaya Rajapaksa said the plan was to develop the terminal as an investment project that has 51% ownership by the state-owned Sri Lanka Ports Authority (SLPA) and the remaining 49% as an investment by India’s Adani Group and other stakeholders.
The President said that the East Container Terminal Development was planned after reviewing all the factors including the regional geopolitical concerns, sovereignty of the country, revenue and employment generation potential”.
He explained that the Eastern Terminal will be sustainably developed” under the investment programme. India contributes 66% of the East Terminal re-export operations. 9% is re-exports to Bangladesh and the rest to several other countries.
The operation of the West Container Terminal will be handed over to the SLPA.
What’s the history?
The previous administration had agreed to sell the East Terminal to India. The agreement envisaged obtaining a loan from Japan after sale and purchasing construction equipment with the loan money. The President said that after the present Government negotiated with India on the contract it was possible to reach an agreement to retain 51% of the ownership and the control of the terminal under the SLPA.
The previous Government had leased the Hambantota Port to the Government of China for 99 years. After coming to power, the present government, in consultation with China, took over the responsibility for the security of the port, the president noted.
January 21st, 2021 at 7:23 am
Why not get any good foreign investor to invest their money and pay the government a monthly ground rent. They will run it with a good business and professional manner and give locals plenty of jobs. They will be ahead of our own companies as they are bound to have better international business connections to make it very profitable.