Indian company takes CMB Port’s East Terminal
By Chathushka Perera
Colombo, Sri Lanka (CWBN)_ According to informed sources, Adani Group, a multinational Indian conglomerate, has authorised its Ports Wing (Adani Ports and Special Economic Zone Limited) to enter into an agreement with the Sri Lanka Ports Authority to develop the Colombo Port’s East Container Terminal.
The group will be holding a majority stake in the project and the terms and conditions of the agreement are still under discussion. The moves to invest in the port development were stalled following port workers’ protested, threatening an indefinite strike, just prior to the local parliamentary elections in August. The agreements would dictate up 50 years of ownership.
Adani, the India’s largest ports and Logistics Company, signed preliminary agreement last year. It would also be the second international venture under APSEZ. The foreign project carried out by the company is worth a USD 275 million engagement at the Yongon Port, Myanmar.
Moreover, APSEZ reported a 31% increase in profits during the 3rd quarter, which is a substantial rise of 84% with respect to proceeds from 2019.
The project jointly being developed by Sri Lanka, India and Japan, comes against the backdrop of rising tensions in the region with China. India and Japan are members of the informal Quad, an alliance, consisting the US and Australia. Quad is considered as a counter measure against Beijing’s growing influence in the Indo-Pacific region.
