×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 03 February, 2021

  • 12 Min Read

India Sri Lanka ties: East Container Terminal at Colombo Port

India Sri Lanka ties: East Container Terminal at Colombo Port

  • In a flurry of meetings a day after Sri Lanka backed out of an agreement with India and Japan to develop the East Container Terminal (ECT) at the Colombo Port, Indian High Commissioner Gopal Baglay met President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa and Foreign Minister Dinesh Gunawardena.
  • In the India – Sri Lanka ties, India was of the view that Colombo must adhere to its commitments in the tripartite agreement of May 2019, to jointly develop the strategic terminal with the Sri Lanka Ports Authority (SLPA) holding a 51% stake and India and Japan holding 49% together.
  • The Adani Group from India, along with Japanese companies, was to invest in the project expected to cost up to $700 million, as per official estimates.

Mixed signals

  • The Indian side, it is learnt, conveyed that the signals emanating from Sri Lanka should boost the confidence of potential investors.
  • President Gotabaya Rajapaksa has pledged to draw foreign direct investments to the country, rather than take loans.
  • The three high-level meetings follow the Sri Lankan government’s cabinet decision, in the wake of raging protests by port workers’ unions opposed to foreign investment in the facility, that the operation of the ECT would be “100%” with the SLPA, while the West Container Terminal would be offered to India instead, on a 35-year arrangement for development.
  • This is the second instance of Sri Lanka reversing an agreement on a large infrastructure project involving Japan, after the government scrapped the $1.5 billion, Japan-funded Light Rail Transit system last year.
  • The development has sparked alarm in India and Japan, according to diplomatic sources, who said Sri Lanka had neither conveyed its decision nor offered an alternative proposal to either of the partners.
  • Asked how Sri Lanka would mobilise funds to develop the SLPA, especially after the economic impact of the pandemic, Udaya Gammanpila, a Cabinet spokesman, on Tuesday said, “SLPA is going to use its own funds, as well as borrow money from local commercial banks.”
  • On whether Sri Lanka had discussed the option of developing the West Container Terminal with India, he said, “This is a sensitive diplomatic issue. Sri Lanka is always keen to maintain cordial diplomatic ties with India. Sri Lanka has commenced discussions with the Government of India, but I don’t think this is the stage to disclose those details.”
  • While the ECT, which is in its first stage and awaits upgrade, has a 450-metre-long quay wall and water depth of 18 metres, equipping it to accommodate large vessels, the West Container Terminal (WCT) exists merely as a proposal, with no infrastructure yet.

For complete India Sri Lanka relations: click here

Source: TH


World bank logistic performance index 2023

India is now ranked 38th out of 139 nations in the Logistic Performance Index (LPI) 2023 of the World Bank. From its previous rankings of 44th in 2018 and 54th in 2014, this is a notable improvement. Earlier, the Logistics Ease Across Different States (LEADS) Report 2022 was published by the Ministry of Commerce and Industry. About Logi

Smuggling of Gold

Airports discovered more than 63% of this illegal gold. The Department of Revenue Intelligence recently conducted the Golden Dawn Operation across India, seizing 101.7 kg of illegal gold valued at Rs 51 crore. Despite the fact that India receives a legal import of about 800-1,000 tonnes of gold each year, the illicit market is thought to be

India-Thailand Relations

Both parties expressed satisfaction with the ongoing bilateral defence cooperation at the 8th India-Thailand Defence Dialogue, which was held in Bangkok, Thailand. Cultural ties and mutual cooperation that have been shaped by thousands of years of lasting historical and cultural ties characterise India and Thailand relations. Highlight

Translocation of Elephants

The Kerala government's appeal of the order of the Kerala High Court is rejected by the Supreme Court. The Kerala government's appeal against the Kerala High Court's directive to move Arikomban (Wild Elephant), the "rice tusker" of Munnar, to the Parambikulam tiger reserve was recently dismissed by the Supreme Court.

Global Buddhist Summit

Global Buddhist Summit In order to improve diplomatic and cultural ties with other nations, the Ministry of Culture recently organised the First Global Buddhist Summit 2023 in collaboration with the International Buddhist Confederation (IBC). About the summit "Responses to Contemporary Challenges: Philosophy to Praxis" is

Toppers

Search By Date

Post Feed

Newsletter Subscription
SMS Alerts

Important Links