Colombo, Nov 9 (PTI) The Indian envoy in Sri Lanka on Wednesday termed the strategic Colombo Port’s Western Container Terminal a symbol of closer economic cooperation between India and Sri Lanka and how they can work together for mutual benefit, as the construction work commenced at the project.
India’s Adani Group in September last year sealed a deal with the state-owned Sri Lanka Ports Authority (SLPA) to develop and run the strategic terminal.
The construction work at the project commenced here on Wednesday with the participation of Sri Lanka’s Minister of Ports Nimal Siripala de Silva and the Indian High Commissioner in Colombo Gopal Baglay.
The USD 788 million investment by Adani Group would mean that they would hold a 51 per cent stake in it, with Sri Lanka’s Port Authority and the local corporate giant John Keells Holdings jointly holding 49 per cent.
Baglay described the terminal as a symbol of closer economic cooperation between the two countries and how they can work together for mutual benefit.
De Silva said Sri Lanka has always welcomed Indian investments.
“India was the only country which came to our assistance in this current economic crisis by extending us 4 billion dollar support,” de Silva said, referring to the unprecedented financial turmoil faced by the island nation this year.
The 65-hectare terminal will have an 800-meter-long jetty and will be constructed in two phases. The terminal is to be completed by 2026.
The Adani group was eyeing to develop the eastern container terminal of the port with agreements being entered in 2019.
However, the Sri Lanka government in 2020 reneged on the agreement under pressure from the government’s own political party trade unions.
The trade unions wanted the Eastern terminal developed under the Port Authority. The Adani group was instead offered the Western container terminal development. PTI Corr NSA AKJ NSA
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