With the Indian Ocean becoming more integral to global trade, the governments of Japan, India, and Sri Lanka have agreed to jointly develop the Port of Colombo to increase the port’s container volume and enhance marine transportation in and around South Asia.
The three partners will begin work by March 2020. The $500 million project will develop the East Container Terminal, located at the southern part of the Port of Colombo, which has been newly expanded. India and Japan will nominate companies that will handle the containers from their respective countries. They will deepen the port and develop a facility to allow large container ships to enter.
The Sri Lankan government will have a 51 percent stake in the terminal. The rest of the stake will be divided between India and Japan which will provide a 40-year soft loan with a 0.1 percent interest rate with a 10-year grace period. This move is interesting because China has recently funded similar efforts across Asia and Africa with its Belt & Road Initiative.
Last updated: December 26th, 2025
