Asian rivals China and India are now squaring off in Sri Lanka. Yesterday saw Indian conglomerate Adani sign a $700m agreement with the Sri Lanka Ports Authority (SLPA) and John Keells Holdings to jointly develop a container terminal at Colombo Port. Colombo West International Container Terminal will add 3.2m teu annual capacity to the Port of Colombo. Adani has a 51% stake in the new terminal in a 35-year deal.
As much as 70% of India’s containers are transhipped via Sri Lanka.
China has strong interests in Sri Lankan ports with China Merchants controlling the southern Hambantota port and Colombo International Container Terminal (CICT), located next door to the strip of quayside that Adani will now develop.