The Colombo port setback for India
After strong opposition from trade unions across the country, Sri Lanka has unilaterally pulled out of a 2019 agreement with India and Japan for developing the strategic East Container Terminal (ECT) at the Colombo Port.
Daily Current Affairs Quiz 2021
In 2019, India and Sri Lanka signed a memorandum of understanding for “co-operation on economic projects”.
The MoU did not mention the Eastern Container Terminal, but India and Sri Lanka had already been in discussion for its development and operation.
Reason:
Although India and Sri Lanka have seemingly friendly ties and much cultural affinity and people-to-people contact, the relationship is complex.
The majority Sinhala-Buddhist public opinion is layered with the memory of Indian intervention in the ethnic conflict.
Thus, unlike Chinese projects, big projects by India have always faced opposition in Sri Lanka.
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