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East Container Terminal (ECT) project in Sri Lanka
Why is it in news?
- Sri Lanka backed out of an agreement with India and Japan to develop the East Container Terminal (ECT).
- Indian High Commissioner Gopal Baglay met President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa.
Details:
- The tripartite agreement was signed in May 2019.
- The strategic terminal has 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.
- India's message to Sri Lankan leadership, is that Colombo should adhere to its commitments in the tripartite agreement.
- Sri Lankan authorities said they would mobilise funds to develop the project by using its own funds, as well as borrow money from local commercial banks.