High Commissioner of India to Sri Lanka, Mr Gopal Baglay has called on President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa and Foreign Affairs Minister Dinesh Gunawardena yesterday (February 02).

According to sources, the focus of the discussions has fallen on the recent developments pertaining to the Eastern Container Terminal of Colombo Port.

The high-level meetings took place after the Sri Lankan government’s decision to call off the deal with India and Japan regarding the Eastern Container Terminal.

Cabinet of Ministers has given the approval to operate the East Container Terminal as a wholly-owned container terminal of the Sri Lanka Ports Authority (SLPA).

Port unionists had been engaged in protests and trade union actions against foreign investments in the Eastern Container Terminal, urging the government to retain the operation of the facility 100 percent with the SLPA.

Meanwhile, necessary steps are to be taken to develop the West Container Terminal of the Colombo Port on the basis of operating and developing as a public-private partnership and return it within 35 years together with the Government of India and the Government of Japan nominated parties and SLPA.

Government said the decision regarding the West Container Terminal has been taken in compliance with the International Agreements signed by the Government of Sri Lanka with a view to developing the Port of Colombo as a competitive port in the region.

An Indian news provider, The Hindu, quoting official sources, said “the thrust of the Indian envoy’s message to the Sri Lankan leadership was that Colombo must adhere to its commitments in the tripartite agreement of May 2019, to jointly develop the strategic terminal with the Sri Lanka Ports Authority (SLPA) holding 51 % stakes, and India and Japan, holding 49 % together.”

“The Adani Group from India, along with Japanese companies, was to invest in the project expected to cost up to $700 million, as per official estimates.”

“The development has sparked alarm in India and Japan, according to diplomatic sources, who said Sri Lanka had neither conveyed its decision, nor offered the alternative proposal to either of the partners,” the Hindu said further.