Sri Lankan authorities have entrusted the construction of Colombo's new giant port to a Chinese state initiative. Colombo is located in the middle of the sea route connecting Dubai and Singapore, which are important places of world trade. Therefore, Colombo has a strategic place in the Indian Ocean. In fact, the Sri Lankan port operator signed a preliminary contract with India and Japan in 2019 for the construction of a container terminal called “Eastern Container Terminal, ECT”. However, the Sri Lankan government canceled this preliminary contract in February 2021 and decided to sign a new agreement, this time with China's China Harbor Engineering Company initiative.
Although the monetary scope of the contract is not specified, it is stated that an investment of at least 500 million dollars is required for the construction of this terminal, the construction of which has already begun. It is known that China has financed significant investments in Sri Lanka, which was an island country in the Indian Ocean, in the last 10 years.
Source: China International Radio