NEW DELHI, Feb 2: India has conveyed to Si Lanka that it expected the country to honour its previous commitment to allow it to operate a major port terminal at Colombo port.
The communication was sent to Colombo after the minutes of a cabinet meeting was released on Tuesday pointing out that the East terminal of Colombo Port would be 100 per cent owned and operated by the state-owned Sri Lanka Port Authority. Sri Lanka had previously said the port would be 49% operated by India and Japan, with SLPA retaining the majority stake.
The cabinet meeting minutes said India and Japan would instead be invited to develop the nearby West terminal on a public-private partnership basis without elaborating any further.
The decision comes less than a month after a visit by Indian Foreign Minister S. Jaishankar to Colombo to shore up support for the 2019 deal that also involved Japan and India’s Adani Group.
“The commitment of the Government of Sri Lanka … has been conveyed several times in the recent past, including at the leadership level,” a spokesman for India’s embassy in Colombo said in an emailed statement on Tuesday.
“Sri Lanka’s cabinet also took a decision three months ago to implement the project with foreign investors. All sides should continue to abide by the existing understandings and commitment,” the communication said.
Sri Lanka is key in the battle for influence in South Asia between traditional power India and China, which has been making increasing inroads there.
China took over Hambantota port in the south of Sri Lanka in 2016 after it failed to keep up with debt repayments. Beijing is also involved in the construction and operation of a neighbouring port terminal in Colombo, as well as other critical infrastructure.
(Manas Dasgupta)