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Final decision on ECT: Pending cabinet committees’ reports

10 Jan 2021

  • Unions to step up opposition

  A final decision on the controversial Memorandum of Co-operation (MoC) signed between India, Japan, and Sri Lanka to jointly develop the East Container Terminal (ECT) at the Colombo Port is to be taken, following the recommendations by the two committees appointed by the Cabinet of Ministers, The Sunday Morning learnt. Accordingly, the project committee is currently evaluating the MoC, and once the recommendations are given, the Cabinet-appointed Negotiating Committee (CANC) will look into the entire MoC and give its recommendations to the Cabinet, Sri Lanka Ports Authority (SLPA) Chairman Gen. (Retd.) Daya Ratnayake said. He told The Sunday Morning that the two committees are currently looking at the MoC signed between the three countries, and that they are not evaluating any proposals submitted by any private companies. When queried specifically about the proposal by the Adani Group of India, he said: “Those are just speculations and such a proposal is not being evaluated by the committees.” Sri Lanka signed the MoC for the development of the ECT with India and Japan on the discussions among the heads of governments during 2017-2019 and on the Cabinet decisions taken on 30 May 2019. The MoC provides for the formation of a Terminal Operations Company (TOC), of which 49% is jointly held by Japanese and Indian shareholders while 51% is held by the SLPA. In terms of the MoC, the TOC was to develop the ECT based on a Japanese loan to the SLPA, guaranteed by the Government of Japan. However, since mid-June last year, there has been vehement opposition by trade unions attached to the SLPA over the development of the ECT and the related involvement of India and Japan. Instead, the unions have urged the Government to hand it over to the SLPA. The MoC was reached soon after China was given a controlling equity stake and a 99-year lease of the Hambantota Port, and concerns have been raised as to whether this deal is also a result of escalating geopolitical competition between regional powers. Following the visit of the Indian Minister of External Affairs last week, the trade unions attached to the Colombo Port intensified their opposition, urging the Government to cancel the MoC. They alleged that steps were being taken by the authorities to convert the MoC signed under the previous Government to a Memorandum of Understanding (MoU), giving legal recognition to the tripartite agreement arrived at between India, Japan, and Sri Lanka. Meanwhile, speaking to The Sunday Morning, All Ceylon General Ports Employees’ Union (ACGPEU) Deputy General Secretary G. Niroshan claimed that as per the cabinet proposal submitted by Minister of Ports Rohitha Abeygunawardena, the Government is now planning to hand over the operation to India’s Adani Group. Even though it says that the ECT would be operated by India, Japan, and Sri Lanka, it is revealed that India is trying to take the majority of the shares and gain full control of the terminal, he alleged. “We have been protesting against the Government’s attempt for years, but it seems the Government is going ahead with its plan without listening to the protests,” he claimed, adding that therefore, 23 unions of the SLPA had decided last week to take the struggle out of the port and to obtain the support of everyone who is concerned about protecting the ECT. Highlighting the claim made by the authorities that only 49% of the shares would be given to India and that the rest would be in the hands of the SLPA, trade union members stressed that the ECT should be kept with the SLPA. No matter what the amount of shares is, even 1% should not be handed over to India, they strongly opined.


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