Colombo Port’s East Container Terminal development finally goes to the management of Japan and India while the overall ownership is vested in Sri Lanka, Sri Lanka Ports Authority (SLPA) sources confirmed.
The signing of the final agreement on the ECT development due in October facilitating the future growth of the Colombo Port, as it has reached its peak capacity, a top official of the SLPA disclosed.
According to the Memorandum of Understanding (MoU), the SLPA retains 100% ownership of the East Container Terminal.
The Terminal Operations Company (TOC), which will be responsible for all operations within the terminal, will be jointly owned by Sri Lanka, Japan, and India.
Sri Lanka will maintain a 51% stake in the company, while Japan and India will hold minority stakes of 34% and 15%, respectively. Development of the ECT will be financed by Japan through a 40-year soft loan of between $ 500-800 million.
The loan will be at a 0.1% interest rate with a grace period of 10 years. The SLPA boasted the terms as one of the best agreements it has ever negotiated.
The move, however, appears to have flustered China which handles the Colombo Port’s Colombo International Container Terminal (CICT) through China Merchant Port Holdings.
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