India ties unharmed despite ECT fallout: Govt.

Wednesday, 3 February 2021 00:28 -     - {{hitsCtrl.values.hits}}

  • Cabinet spokesmen believe decision will not injure relations 
  • Insist Govt. has right to make decisions putting SL interests first 
  • Under fresh plan ECT to be developed in three years with local investment 
  • Fully aware of risks in pulling out of MoU: Gammanpila 
  • Decision final; steps will be taken to officially notify New Delhi  

By Asiri Fernando


The Government was confident yesterday that its decision regarding the East Container Terminal (ECT) will not be injurious to relations with India, and Sri Lanka’s closest neighbour would understand the underlying concerns that prompted the call.  

Cabinet Spokesman Keheliya Rambukwella, along with co-spokesmen Udaya Gammanpila and Dr. Ramesh Pathirana were united in the view that the Sri Lankan Government had the right to make the decision based on the economic and geo-political interests of the country. Co-Spokesman and Energy Minister Gammanpila also insisted that the Government’s decision to place the terminals ownership completely under the Sri Lanka Ports Authority (SLPA)’was in the best interests of the country. 

“This Government inherited this international agreement. However, we did what was right for the country. Considering the strategic value of the ECT we want the SLPA to have full control of it and we are fully aware of the risks of pulling out of an international agreement,” Gammanpila said. He opined that the ECT was the only Colombo Port terminal that could perform back-to-back operations and therefore should be under State control. 

His views were echoed by fellow spokesman Dr. Pathirana who recalled that President Gotabaya Rajapaksa had refused to approve the Millennium Challenge Corporation (MCC) grant agreement as well.  

“India is a very important partner for Sri Lanka, not only for trade but also geo-politically. India has been a friend and has been very helpful. However, we can make India understand the current situation in Sri Lanka and the importance of the port for us.”

However, responding to questions Dr. Pathirana also said the Cabinet did not decide to terminate the agreement. “We have looked at better managing our national asset and, looked at national requirements when reaching this decision.”

The Government plans to develop the ECT in three years. This will be done by following a three-stage development plan by the SLPA and using its funds as well as local loans, Rambukwella said responding to a question.

“We have taken a decision and it is the final decision on the matter. As a Government, we appointed two committees to review the proposal and have arrived at this decision based on their reports. We have looked at this issue from economic, scientific and geo-political approaches. The Government never said that they will approve it,” Rambukwella stressed.

The Port Ministry will communicate the Cabinet’s decision regarding the ECT to New Delhi, through diplomatic channels, Rambukwella added, insisting the Cabinet resolution made on Monday was final but declined to give further details of how Sri Lanka will move to formally remove itself from the tripartite Memorandum of Understanding (MoU) signed in 2019.  

Sri Lanka’s response comes in the wake of a strong statement by the Indian High Commission, requesting Sri Lanka to honour the terms of the tripartite agreement between, Japan, India and Sri Lanka signed during the previous Government’s term.  

The Cabinet of Ministers on Monday approved a Cabinet paper presented by Prime Minister Mahinda Rajapaksa to operate the ECT as a wholly owned container terminal under SLPA.

The Cabinet decision to develop the West Container Terminal of the Colombo Port as a Public Private Partnership, with control to be returned within 35 years, was in line with promises made by President Gotabaya Rajapaksa in his election manifesto, Gammanpila stated. 

The Government has said the West Container Terminal will be developed with the governments of India and Japan as a Public Private Partnership with ownership to be returned to Sri Lanka within 35 years.

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