The Memorandum of Cooperation (MoC) among the three governments of Sri Lanka, Japan and India on the development of the East Container Terminal (ECT) located in the Colombo South Port was signed in Colombo today, the Ministry of Ports, Shipping and Southern Development said.

"As a hub of the Indian Ocean, the development of Sri Lanka and openness of its ports are of great importance. Colombo Port is the leading Port in the region. This joint project reflects the longstanding good will and cooperation among the three countries. Japan has provided cooperation for the development of the Jaya Container Terminal since the 1980’s. Around 70% of Colombo Port’s transshipment business is India-related. Sri Lanka, Japan and India will work together for further development of the Colombo Port and contribute to further regional prosperity and stability of global trading networks," the Ministry said in a statement.

The statement also added, "SLPA retains 100% ownership of East Container Terminal (ECT). The Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51% stake, and the joint venture partners hold a 49% stake. The envisaged Japanese loan carries one of the best loan terms Sri Lanka has obtained. The 51% stake is also one of the best in SLPA joint ownership endeavors. SLPA’s majority ownership in the new TOC represents a significant step in prioritizing National Interests."

"The three governments will work out details based on the MOC at joint working group meetings, and advance their cooperation towards early commencement of work and operation of the ECT."