EAST CONTAINER TERMINAL (ECT), COLOMBO PORT

May 29, 2019

Sri Lanka, Japan and India signed an agreement to jointly develop the East Container Terminal at the Colombo Port.

Key Highlights of the agreement: 

  • Location: The ECT is located some 3 km away from the China-backed international financial city, known popularly as “port city”, being built on reclaimed land on Colombo’s sea front. 

  • Ownership: 
    • The Sri Lanka Ports Authority (SLPA) retains 100% ownership of the East Container Terminal (ECT). 

    • The Terminal Operations Company, conducting its operations, is jointly owned. Sri Lanka will hold a 51 % stake in the project and the joint venture partners will retain 49%.



  • Cost: The joint initiative is estimated to cost between $500 million and $700 million.
    • Japan is likely to provide a 40-year soft loan with a 0.1 % interest rate.

    • Details of India’s contribution to the initiative are awaited.



  • Significance of the project for India: Over 70 % of the transhipment business at the strategically located ECT is linked to India.

  • Way Ahead: The specific terms of the agreement to jointly develop the ECT will soon be finalised at a joint working group meeting.

Source : The Hindu