Sri Lanka u-turns yet again on deep-water port deal
The government of Sri Lanka has said it does now intend to offer India and Japan a contract to develop a new strategically important deep-water terminal.
The Sri Lankan government has said that it does now intend to offer India and Japan the opportunity to develop a deep-water terminal in Colombo, reports the Times of India.
The government pulled the plug on the deal to develop the East Container Terminal last month, but in an abrupt volte-face on Tuesday, officials are now offering Delhi and Tokyo the opportunity to develop the West Container Terminal (WCT) which is located on the other side of the Chinese-run Colombo International Container Terminal.
“The discussions to develop WCT will only be with India and Japan”, government spokesman Keheliya Rambukwella told reporters. It is unclear how Tokyo and Delhi will divide their majority stake in the port.
Sri Lanka was unable to repay a huge Chinese loan in 2017 and had to allow China Merchants Port Holdings to take over the southern Hambantota port, which straddles the busiest east-west shipping route in the world.
The new deal is seen as an effort on the part of the Colombo government to bolster against undue Chinese influence in the region.
