Colombo: Sri Lanka has given a big blow to India on the strategic deal front. Actually, with India and Japan, Sri Lanka had signed an agreement to build a big port terminal. But the opposition has been proclaimed after a week of protests in the country and Prime Minister Mahinda Rajapaksa (Prime Minister Mahinda Rajapaksa) has canceled the deal. It is considered a setback for India trying to establish its strong presence in the Indian Ocean.
Sri Lanka made this agreement
Sri Lanka had decided to build a strategically important East Container Terminal (ECT) under an agreement with both countries. In this deal, 49 percent of the terminal would be with India and Japan. Sri Lanka Port Authority holds 51 percent in it. Now Sri Lanka has said that it will build the West Container Terminal together with India and Japan.
Trade unions were opposing the agreement with India-Japan
This agreement with India and Japan was opposed by the Colombo Port Trade Unions. The unions demanded that the ECT be fully empowered by Sri Lanka Port. That means 100 per cent share should be held by him. 23 trade unions opposed the port deal. The unions alleged that the ECT agreement with Adani Group of India was not correct.
Most of the unions are associated with the ruling party
Most unions opposing the deal are associated with the ruling Sri Lanka People’s Party (SLPP). After their protest, the government is not moving forward on this deal.
Sri Lankan cabinet approved the deal
The Indian High Commission in Sri Lanka said that India hoped that the agreement would be completed in time. The deal was signed in 2019. The Sri Lankan cabinet had cleared the deal three months ago. But this deal was being opposed by Sri Lankan trade unions and opposition parties. They were demanding to stop this deal.
This deal was important for India in the Indian Ocean
India also had this deal with Sri Lanka to make a big lead in the sea compared to neighboring China. Now the cancellation of this agreement of Sri Lanka is considered as a strategic setback for India.
Sri Lanka is trapped in China’s debt trap
China has been acknowledging the important role of Sri Lanka’s ambitious plan Belt and Road. The dragon had given billions of dollars of loans for several important Sri Lankan projects in the last decade. However, experts say that Sri Lanka is not going to benefit much from the loan given by China, it will have to face difficulties in returning it.
