Current Affairs PDF Sales

Sri Lanka approves Proposal to develop WCT of Colombo Port with Assistance from India & Japan

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Sri Lanka approves proposal to develop Colombo WCTOn March 1, 2021, Sri Lankan Cabinet approved a Build, Operate and Transfer (BOT) proposal for developing the West Container Terminal (WCT) of Colombo South Port with parties nominated by Indian & Japanese Government. The port will be developed in collaboration with the Sri Lanka Ports Authority.

  • Indian High Commission has nominated Adani Ports and Special Economic Zone Ltd (APSEZ Consortium) while the Japanese government is yet to nominate a party.
  • As per the agreement, the WCT will be operated over a period of 35 years as a Public Private Partnership model with APSEZ & its local representative John Keels Holding PLC & the Sri Lanka Ports Authority.
  • India & Japan will have 85% stake in the WCT.

Background

In February 1, 2021, Sri Lankan Government decided to eject India & Japan from a 2019 Tripartite agreement to jointly develop the East Container Terminal (ECT) of the Colombo Port.

Increase in China’s Influence

  • WCT is located near the USD 500 Million Chinese container Jetty at the Colombo International Container Terminal (CICT).
  • As part of its Belt & Road Initiative (BRI), China is developing many infrastructure projects in Sri Lanka.
  • It has invested around USD 8 Billion in Infrastructure projects. In 2017, Sri Lanka handed over its Hambantota port to China as a debt swap.

Recent Related News:

i.On September 26, 2020 Indian Prime Minister Narendra Modi and Sri Lankan Prime Minister Mahinda Rajapaksa held a Virtual Bilateral Summit.

About Sri Lanka:

President – Gotabaya Rajapaksa
Capital – Colombo, Sri Jayawardenepura Kotte
Currency – Sri Lankan Rupee