India has thwarted the development of the East Container Terminal at the Colombo Port, Sri Lanka's opposition politicians said. Three gantry cranes worth USD 25.7 million that had been purchased on June 20 for the development of the terminal, have not been set-up on the development site, drawing condemnation from several entities.

“As a result of this delay, more than 10 million has been incurred as demurrage charges daily since the 26th,” Chandrasiri Mahagamage, the general secretary of the All Ceylon Port General Workers’ Union said.

He pointed out that engineers of the Sri Lanka Ports Authority had constructed the rails required to unload the cranes from the vessel through which it had been shipped, spending more than Rs 20 million.

“Have the development activities at the port been suspended to sell off the remainder of the port to India,” K.D. Lalkantha, a parliamentary election candidate for the National Peoples’ Power said.

Port unions are demanding that the SLPA must not “sell national assets to foreigners”, according to a report published by the Sunday Times.

They want the cranes installed—despite not being of the required specifications for such a deep water facility—and the ECT run under the SLPA, the report read.

However, the Memorandum of Cooperation entails international obligations that India, in particular, is keen to enforce.

Sri Lanka’s President Gotabaya Rajapaksa had given the go-ahead to Shipping Minister Johnston Fernando to start talks on changing an agreement signed building a container terminal in Colombo port, Information Minister Bandula Gunewardene said. Sri Lanka Ports Authority had signed agreement with India and Japan to run the partially built East Terminal after dropping plans for a standard build-operate-transfer deal which drew responses from top shipping firms amid opposition from then-President Maithripala Sirisena.

“Ports Minister Johnston Fernando informed t that the last administration had entered into a deal which is highly unfavourable to the country,” Cabinet spokesman Minister Bandula Gunewardene told reporters.

“President (Gotabya Rajapaksa) gave authority (balaya pawaruwa) to Minister Johnston Fernando to direct discussions at a diplomatic level.

“Because this is an agreement signed between states, it has to be treated with care. After discussion he could brief you on that matter in the future.”

Sri Lanka Ports Authority workers objected to the unloading of some cranes that had arrived at Colombo port in a protest against the deal. (Colombo/June28/2020)

https://economynext.com/sri-lanka-to-discuss-changing-colombo-port-terminal-deal-with-india-and-japan-minister-71510/