The East Container Terminal (ECT) to be developed as a transshipment hub cannot be developed without foreign assistance, said State Minister for Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal.
“The Sri Lanka’s Port Authority would keep the controlling stake of 51% and would offer the remaining 49% to other investors, he said.
He was speaking a special press conference at Water’s Edge yesterday. “Some have made a misjudgment thinking that this is a venture where only India is involved but Japan too would invest.”
“While the Adani Group has been nominated to develop the East Container Terminal from India, another company from Japan too would invest by providing the technical knowhow. It is open for more investors as well,” he said.
State Minister Cabraal also said that unlike the Hambantota Port deal signed with China by the previous Government, in this instance Sri Lanka will be holding the controlling stake and will also earn profits. Under the Chinese Port privatisation deal in Hambantota, Sri Lanka will only get a ‘lease rental’ and there is no profit sharing and the agreement is also effective for a further 98 years. “Sri Lanka will only provide the infrastructure for the ECT and would not be making any financial commitments making this project a profitable venture for the country,” he added.
Cabraal said that in May 2019, the former Government, signed a Memorandum of Cooperation (MoC) with India and Japan for the ECT project and these international agreements cannot be changed though a Government changes.
The ECT is to be positioned as a Transshipment hub with around 67% of the business involving India. Hence, having an Indian counterpart is something that is necessity.
He also emphasised that there was no pressure by the Indian Government to go ahead with this project.
Source: Daily News
