Why Sri Lanka pushed India out of Colombo terminal project

After the strong opposition from trade unions across the country, the Sri Lankan government was forced to renege on a 2019 agreement with India and Japan to develop the strategic East Container Terminal (ECT) at the Colombo Port.

After Prime Minister Mahinda Rajapaksa’s statement that the operation of the east terminal would be done by Sri Lanka Ports Authority on its own, a cabinet meeting approved a proposal to develop the West Terminal at the Colombo Port as a Public Private Partnership with India and Japan, which was seen as a bid to compensate India. It is unclear whether India would accept the latest proposal even as the Sri Lankan government rules out chances of further troubles.

How has India reacted?


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