India seeking govt-to-govt agreement with Sri Lanka and is keen to take over Colombo West terminal
Notwithstanding the
volte face by the Sri Lankan by going back on the agreement to hand over
Colombo east terminal, India is still keen on having a foothold in Colombo port
and is keen on working out a government to government deal to take over the
Colombo West port and develop it from a scratch
The Colombo
transhipment hub moves a large portion of India’s export-import cargo containers
from east coast ports. Because of this development, the east coast ports mostly
in Tamil Nadu have been downsized to become feeder ports depending upon Colombo
port for their cargo movement to liner vessels. Liner vessels have started
skipping Tamil Nadu ports and drop the Indian cargo meant for the east coast at
Colombo.
India for govt to govt agreement as for the new offer from Sri Lanka
While withdrawing
from the agreement entered into with India on handing over Colombo east
terminal, Sri lanka had come out with a new offer to take over Colombo West
terminal which has to be developed from a scratch. Indications are that India
is willing to accept the Sri Lankan offer provided there is government to
government agreement. India wants the island nation to give in writing its
offer to allow the handover of Colombo west terminal
Industry leaders are concerned that ports in South India will become
permanent feeder ports depending on Colombo
