The governments of Japan, India and Sri Lanka have agreed to develop a container terminal at the Port of Colombo, which has attracted major investment from China under its Belt and Road initiative. As per the statement in the daily, the three nations will sign a memorandum of understanding (MoU) in the coming months for the east container terminal. This is located at the newly expanded south part of the Port of Colombo. The MoU will enable the concerned parties to develop a facility to allow large container ships to enter.
Japan has pushed its plans to be a player in the region under its Free and Open Indo-Pacific Strategy. Sri Lanka has been one of the countries drawn to China’s Belt and Road Initiative, an ambitious plan announced in 2013 by President Xi Jinping to build an estimated USD 1 trillion of infrastructure to support increased trade and economic ties and further Chinas interests around the globe. One project in the country includes Port City Colombo being built by China Communications Construction Co, or CCCC. The plan envisions a financial district — pitched as a new hub between Singapore and Dubai — with a marina, a hospital, shopping malls, and 21,000 apartments and homes.