May 28, 2019 (LBO) – Memorandum of Cooperation (MoC) among the three governments of Sri Lanka, Japan and India on the development of the East Container Terminal (ECT) located in the Colombo South Port was signed in Colombo on Tuesday.
The Ministry of Ports, Shipping and Southern Development said the three governments will work out details based on the MOC at joint working group meetings, and advance their cooperation towards early commencement of work and operation of the ECT.
According to the Ports Ministry, the SLPA retains 100 percent ownership of East Container Terminal (ECT).
The Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51 percent stake, and the joint venture partners purchase a 49 percent stake.
The ministry said that the envisaged Japanese loan carries one of the best loan terms Sri Lanka has obtained.
“The 51 percent stake is also one of the best in SLPA joint ownership endeavors,” the Ports Ministry said in a statement.
“SLPA’s majority ownership in the new TOC represents a significant step in prioritizing National Interests.”
Japan has provided cooperation for the development of the Jaya Container Terminal since the 1980’s. Around 70 percent of Colombo Port’s transshipment business is India-related.
The ministry added that Sri Lanka, Japan and India will work together for further development of the Colombo Port and contribute to further regional prosperity and stability of global trading networks.