New Delhi: The Adani Group on Thursday signed an agreement with the Sri Lankan Ports Authority (SLPA) for the construction of a new sea terminal in Colombo.
“We signed an agreement with the Adani group of India to build a strategic brand new deep-sea container terminal. The agreement worth more than $700 million is the largest foreign investment ever in the port sector of Sri Lanka,” SLPA said in a statement.
The joint venture, known as the Colombo West International Terminal, includes John Keells with 34 percent shares and the Adanis with 51 percent controlling stake, making the Indian company the majority partner.
The new container terminal will be 1.4 km long, 20 meters deep, with an annual handling capacity of 3.2 million containers.
The company will complete the first phase of the terminal within two years.
In 2017, Sri Lanka had allowed China Merchants Port Holdings to acquire the Southern Hambantota port in Colombo after failing to repay a Chinese loan. The deal promised a 99-year lease to China.
The United States and India believe that this debt-trap strategy will help connect China to the world’s busiest East-West shipping route and provide Beijing with military advantage in the Indian Ocean.
(Avya Mathur)
