The Adani Group of India has agreed to build a strategic deep-sea container facility in Sri Lanka for $700 million.
The Sri Lanka Port Authority (SLPA) announced the signing of an agreement with the Adani Group of India.
At the Port of Colombo, Sri Lanka’s capital, the terminal will be constructed close to a $500 million Chinese-run jetty. Officials say it’s part of a plan to counteract China’s growing influence in the region.
Adani will form a joint venture with John Keells, a local business, and the Sri Lankan government-owned SLPA.
Colombo is situated on the Indian Ocean, halfway between Dubai and Singapore. Meaning, having a stronghold on its ports will be extremely profitable.
Because Sri Lanka was unable to repay a large debt from China, it was forced to hand over control of the southern Hambantota Port to Chinese traders.
India and the USA expressed deep concern on the Chinese foothold in Hambantota port could give china a military advantage in the Indian ocean.
Sir Lanka halted the 2019 agreement for India & Japan to develop the crucial east container terminal at Colombo port after weeks of protest by trade unions and opposition parties.
However, on Tuesday, Sri Lanka stated that it would build a new terminal, the west container terminal, at the same port as India and Japan.
The Cabinet approved the project, which would be administered as a public-private partnership with the Ports Authority and corporations chosen by the Indian and Japanese governments, according to government spokeswoman Keheliya Rambukwella.
India was particularly interested in the East terminal because it accounts for roughly 66 percent of the facility’s re-exports.
India, which considers the Indian Ocean region to be its strategic backyard, has for years been worried by rival China’s growing economic and political influence over neighboring Sri Lanka.
