Is the Colombo Port Setback for India?

~SOUMITA DAS

Sri Lanka revoked the Colombo port deal with India due to mass protests. The Adani Group was to invest in the port on behalf of India. But the people of Sri Lanka stood up against the privatization of the port of Colombo. As a result, the Mahinda Rajapaksa government was forced to withdraw the decision.

In 2019, Sri Lanka signed an agreement with India and Japan to build a container terminal at the eastern end of the Colombo port. According to the agreement, 49 per cent ownership of the port terminal will be in the hands of India and Japan and the remaining 51 per cent will be in the hands of Sri Lanka. But more than 20 workers unions protested against this agreement. They made it clear that the port would not be allowed to go into private hands in any way. Sri Lankan President Gotabhaya Rajapaksa also had to attend a meeting to handle the situation but it went to vein. A rift was seen between the ruling party’s members and the government itself. As a result, Colombo was forced to cancel the port agreement. Meanwhile, to honor the international agreement Sri Lankan government has finally offered India and Japan to build a container terminal at the western end of the Colombo port.

Some analysts believe that it is a hit to India in the diplomatic arena. However, many still think that New Delhi's influence in the island nation is still strong as Sri Lanka has given India a place to invest at the other end of the Colombo port.

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