Historic US boost for Sri Lanka’s shipping hub status in South Asia

•  US International Development Finance Corporation extends 20 year financing worth $ 553 m to India’s Adani, SL’s JKH and SLPA owned Colombo West International Terminal costing $ 750 m 

•  DFC CEO Scott Nathan says funding will expand SL’s shipping capacity, creating greater prosperity without adding to sovereign debt whilst strengthening the position of its allies across the region 

•  Ambassador Julie Chung says support symbolic of US’ long-standing commitment to SL as its regain economic footing to further shared vision for a free and prosperous Indo-Pacific 

•  Govt. big wigs Foreign Minister Ali Sabry, National Security Advisor Sagala Ratnayake and Indian envoy witness loan agreement signing ceremony

• Deal signifies US, Sri Lanka and India fostering enduring legacy of cooperation in the development of sustainable infrastructure, like smart and green ports

•  Colombo is the largest and busiest transhipment port in Indian Ocean and Sri Lanka one of the world’s key transit hubs with half of all container ships transiting through its waters 

•  Adani Ports CEO Karan Adani says DFC support is reaffirmation by the international community of Group’s vision, capabilities and governance Says deal will facilitate private sector-led growth and attract crucial foreign exchange to Sri Lanka to aid in its economic recovery 

• JKH Chairperson Krishan Balendra says DFC investment an endorsement of potential of the CWIT project and a boost for investor confidence on SL

•  Analysts term 20 year tenor of financing for entirety of debt component of project is attractive amidst SL’s default-Sovereign status and low credit rating

FT Thursday, 9 November 2023

The United States yesterday signified its biggest boost for Sri Lanka’s hub status for shipping in the Indian ocean with its International Development Finance Corporation (DFC) committing a 20 year financing worth $ 553 million to upcoming Colombo West International Terminal (CWIT) by a joint venture involving Indian giant Adani, Sri Lanka’s top blue chip John Keells Holdings and the Sri Lanka Ports Authority.

Given the historic significance and importance of the support from a regional and Sri Lanka’s perspective, US Ambassador Julie Chung, Indian High Commissioner Gopal Bagley, Sri Lanka’s Foreign Affairs Minister Ali Sabry and President’s Chief of Staff and National Security Advisor Sagala Ratnayake witnessed the agreement signing yesterday in Colombo between the parties.

Analysts told the Daily FT that given the 20 year tenor, the financing for the entirety of the debt component of CWIT is favourable. It also comes at a time when Sri Lanka remains a default-Sovereign and low grade credit rating. The CWIT costs $ 750 million and the balance is funded by equity.

DFC said its commitment of over half a billion US Dollars to support the development of a deep-water shipping container terminal in the Port of Colombo, will provide critical infrastructure for the South Asian region.

The new terminal reflects DFC’s commitment to financing high-quality infrastructure that supports its partner’s development needs, invests in local communities, and is respectful of local financial conditions. The investment further demonstrates the US enduring commitment to Sri Lanka’s economic growth and its regional economic integration, including with India.

When commissioned, CWIT will be the largest and deepest container terminal in Sri Lanka. With a quay length of 1,400 m and an alongside-depth of 20 m, CWIT will be equipped to handle ultra large container vessels with capacities of 24,000 TEUs. The new terminal’s annual cargo handling capacity is likely to exceed 3.2 million TEUs. Last year the Colombo Port handled nearly 8 million TEUs.

DFC, the US government’s development finance institution, partners with the private sector to finance solutions to the most critical challenges facing the developing world. It invests across sectors, including energy, healthcare, infrastructure, agriculture and small business and financial services. 

DFC CEO Scott Nathan said, “DFC works to drive private-sector investments that advance development and economic growth while strengthening the strategic positions of our partners. That’s what we’re delivering with this infrastructure investment in the Port of Colombo.”

“Sri Lanka is one of the world’s key transit hubs, with half of all container ships transiting through its waters. DFC’s commitment of $ 553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka, without adding to sovereign debt, while at the same time strengthening the position of our allies across the region,” Nathan added.

US Ambassador to Sri Lanka Julie Chung said, “The $ 553 million investment by DFC for the long-term development of the Port of Colombo’s West Container Terminal will facilitate private-sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery. This financing is symbolic of the US long-standing commitment to the development and well-being of the people of Sri Lanka. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific.”

The US sentiments were in apparent response to China whose state-owned entities manage and majority own the biggest and most modern terminal (CICT) in the Colombo Port and the Hambantota International Port in deep-south of Sri Lanka.

Adani Ports and SEZ Ltd, is India’s largest port operator whilst JKH already operates Sri Lanka’s first ever private sector owned and managed terminal South Asia Gateway Terminal Ltd.

This is the first time that the US Government, through one of its agencies, is funding an Adani project, which is a ringing endorsement of the group, Adani said adding, “It shows their confidence in the group’s ability to invest and to create a world class container facility in Colombo Port.”

DFC said its commitment of over half a billion US Dollars to support the development of a deep-water shipping container terminal in the Port of Colombo, will provide critical infrastructure for the South Asian region. 

Adani Ports and Special Economic Zone CEO Karan Adani said, “We welcome the association of the US International Development Finance Corporation (DFC), the US government’s development finance institution, in funding the Adani project, and we see this as a reaffirmation by the international community of our vision, our capabilities and our governance.”

 ”As one of the world’s largest port developers and operators, APSEZ brings to this project not only our proven world-class expertise but also our deep experience in infrastructure creation. When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the Island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka’s trade and commerce ecosystem.”

JKH Chairperson Krishan Balendra said, “DFC’s investment is an endorsement of the potential of the West Terminal project and a boost for investor confidence as Sri Lanka’s economy recovers”.

The Port of Colombo is the largest and busiest transhipment port in the Indian Ocean. It has been operating at more than 90% utilisation since 2021, signalling its need for additional capacity. The new terminal will cater to growing economies in the Bay of Bengal, taking advantage of Sri Lanka’s prime position on major shipping routes and its proximity to these expanding markets.

The Adani group said it is expanding its global footprint through strategic investments in emerging markets. Adani Ports has positioned itself as the market leader in the transport logistics and energy utility portfolio businesses, focusing on large scale infrastructure development in India with operations and management practices benchmarked to global standards. Through its continued commitment to creating stellar and sustainable assets, the group is playing a vital role in building a better future for India and the world.

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Ministry accelerates signing MOU with Adani Group for wind power plant in Mannar

 

Ministry accelerates signing MOU with Adani Group for wind power plant in Mannar: Charitha Herath

(Daily Mirror) By CHATURANGA PRADEEP SAMARAWICKRAMA 8 November 2023 

COLOMBO - According to reports, the Power and Energy Ministry is expediting the signing of documents for a Memorandum of Understandings (MOUs) with India's Adani Group to establish a new wind power plant in the Mannar basin with a capacity of 250 MW, Sri Lanka Podujana Peramuna (SLPP) MP Prof. Charitha Herath said.

Addressing the media, he said the Ministry is ready to complete the signing of all agreements before November 25.

According to the 2009 Electricity Act, a bit of a process should be followed for local generation of electricity by any private company. But this process was not followed for projects conducted between two governments (government to government - G to G).

MP Herath said the current government is trying to sign all agreements while putting India's Adani Group into the act to pretend that the project is run between Sri Lanka and India.

He said the groups, including the Ceylon Electricity Board (CEB) chairman and General Managers, are in a hurry to complete all agreements before passing the new Electricity Act. These people are trying to give this project an unsolicited proposal.

After completing the project, the responsible groups are trying to sell one unit of wind power-generated electricity for Rs. 46, and these people are trying to sign this agreement for 30 years.

Meanwhile, fixing three new transformers at the Nadukuda Grid Substation was attached to the said project.

MP Herath said the current government is trying to sign all agreements while putting India's Adani Group into the act to pretend that the project is run between Sri Lanka and India.

The agreement signing process has been boosted these days, other than those mentioned in the agreements.

It has been estimated to sell one unit of electricity, which is currently being generating from Pooneryn Wind-Solar Hybrid Energy Park, at Rs.46. A total of 234 MW of electricity is generated from the Pooneryn wind-solar power plant.

The agreements on all other electricity generation projects were signed for twenty years, but the projects under India's Adani Group were signed for thirty years.

The officials at the Power and Energy Ministry and the CEB were requested to make a note that they were forced to make this agreement with any of the higher officials, such as ministers, because there would be a definitive investigation over this issue by the next incoming government, Prof. Herath claimed.

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Fifth India-U.S. 2+2 Ministerial Dialogue

 

Raksha Mantri, Shri Rajnath Singh and Minister of External Affairs Dr. S. Jaishankar will welcome U.S. Secretary of State Antony J. Blinken and Secretary of Defence Lloyd J. Austin III for the Fifth India-U.S. 2+2 Ministerial Dialogue in New Delhi on 10 November 2023.

The 2+2 will enable a high-level review of progress being made in cross-cutting aspects of defence and security cooperation, technology value chain collaborations and people-to-people ties.

The Ministers will take the opportutnity to progress the futuristic roadmap for the India-US partnership as envisioned by Prime Minister Shri Narendra Modi and President Joseph Biden, in their discussions in June and September this year.

Both sides will also take stock of contemporary regional issues and exchange views about shared priorities for augmenting cooperation in multilateral platforms, and through frameworks such as Quad.

Raksha Mantri and EAM are also scheduled to have bilateral meetings with their respective U.S. counterparts, which will mark a continuity of Ministerial Dialogue and reaffirm the India-US Comprehensive Global Strategic partnership.

Watch Video

5th India-US 2+2 Ministerial Dialogue On November 10

India and the US will carry out a comprehensive review of their fast-expanding strategic ties at the next edition of the '2+2' foreign and defence ministerial dialogue on Friday.

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Israeli Minister Calls Nuclear Attack on Gaza “An Option”

Israeli Minister Calls Nuclear Attack on Gaza “An Option”

On Sunday, Netanyahu suspended Israel’s Jerusalem Affairs and Heritage Minister Amichai Eliyahu after he claimed there are no noncombatants in the Gaza Strip and said that dropping a nuclear weapon on the Gaza Strip is “an option.” This comes just days after an Israeli lawmaker from Netanyahu’s ruling Likud Party took to social media to incite genocide. Writing on the social media site X, formerly known as Twitter, Galit Distel Atbaryan wrote, “Erase Gaza from the face of the earth. Let the Gazan monsters rush to the southern border and flee into Egypt, or die.

Inside Story

Does Israel pose a nuclear threat to the world?

Israeli cabinet minister’s statement that an atomic bomb is an option for Gaza raises global alarm.

Israel’s nuclear programme is widely seen as one of the Middle East’s worst kept secrets.

It is believed to have originated in the 1950s. Today, Israel possesses about 90 nuclear bombs, according to the Stockholm International Peace Research Institute.

Israel has never officially acknowledged the existence of its nuclear weapons, but they’re believed to be aimed at rivals in the region such as Iran.

The country is not a signatory to the nuclear Non-Proliferation Treaty.

So the statement by a cabinet minister that Israel could opt to drop an atomic bomb on Gaza is raising alarm. More so since hardliners such as National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich are part of Prime Minister Benjamin Netanyahu’s cabinet.

So as Israel continues its bloodbath in Gaza, should the world be worried about its nuclear arms programme?

Presenter: James Bays
Guests:
Rabia Akhtar – director of the Centre for Security, Strategy and Policy Research at the University of Lahore
Ahmed Abofoul – international lawyer and legal researcher and advocacy officer for Al Haq, a human rights organisation
Patrick Bury – defence and security expert at the University of Bath

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US joins Adani Group to build terminal at Colombo Port

 

daijiworld.com Wed, Nov 08 2023

Colombo, Nov 8 (IANS): The US had joined the Adani Group with a half a billion dollar loan to build a new deep water shipping container terminal at the in strategic Colombo Port in the race against China’s acquisition of part of ports in the Sri Lankan capital and the southern town of Hambantota.

The US International Development Finance Corporation (DFC) on Wednesday announced it’s $553 million finance on the Colombo West International Terminal Private Limited (CWITP), Sri Lanka biggest Foreign direct investment of $750 million to develop the port.

The US has joined in the joint venture between Sri Lanka and India with Adani Ports & Special Economic Zones Limited (APSEZ) which owns 51 shares of the project.

"DFC works to drive private-sector investments that advance development and economic growth while strengthening the strategic positions of our partners. That's what we're delivering with this infrastructure investment in the Port of Colombo," DFC CEO Scott Nathan said while announcing the partnership in Colombo.

"Sri Lanka is one of the world's key transit hubs, with half of all container ships transiting through its waters. DFC's commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka -- without adding to sovereign debt -- while at the same time strengthening the position of our allies across the region," Nathan added.

In addition to APSEZ, CWITP is comprised of Sri Lanka’s John Keells Holdings which owns 34 per cent shares of the build, operate and transfer (BOT) basis project that is to run for a period of 35 years.

The state-run Sri Lanka Ports Authority (SLPA) will have 15 per cent of the total shares.

“We welcome the associate of the DFC in funding the Adani's project. We see this as reaffirmation by the international community of our vision of our capability and our governance. This is the largest single FDI into Sri Lanka through a single project," Karan Adani, APSEZ’s Whole Time Director and CEO, said at the event in Colombo.

“The relationship between Sri Lanka, the US and India is multifaceted and holds great promise. It symbolises the intersection of economic interests, regional stability and global security. Today is a historic day for all of us and today is a day that celebrates the deep historical and cultural and socio-economic bonds between two Asian neighbours Sri Lanka and India.

The US has joined in the joint venture between Sri Lanka and India with Adani Ports & Special Economic Zones Limited (APSEZ) which owns 51 shares of the project. 

"Today is also a day we see the US- India relationship grow in strength and breath. I see this project as a first step through which three countries can foster cooperation and the development of sustainable infrastructure like smart and green ports which will improve the efficiency of port operation and also align with global efforts to combat climate change,” he added.

On her part, the US Ambassador to Sri Lanka Julie Chung said: "The $553 million investment by DFC for the long-term development of the Port of Colombo's West Container Terminal will facilitate private- sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery.

"This financing is symbolic of the US' long-standing commitment to the development and well-being of the people of Sri Lanka. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific."

The Port of Colombo is the largest and busiest trans-shipment port in the Indian Ocean and it has been operating at more than 90 per cent utilisation since 2021, signaling its need for additional capacity.

The new terminal will cater to growing economies in the Bay of Bengal, taking advantage of Sri Lanka's prime position on major shipping routes and its proximity to these expanding markets, the US Embassy said in a statement.

Once completed, the CWIT will be the biggest and deepest container terminal in Sri Lanka and will be equipped to handle ultra large container vessels with capacities of 24,000 TEUs.

The annual cargo handling capacity of this new terminal is likely to exceed 3.2 million

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Online Safety Bill can be passed with a Simple Majority; Supreme Court informs Parliament

Online Safety Bill can be passed with a Simple Majority; Supreme Court informs Parliament

by Staff Writer 7-11-2023 News First

COLOMBO (News 1st); Sri Lanka's Supreme Court has determined that the Online Safety Bill or its provisions are NOT inconsistent with the constitution of Sri Lanka, and can be passed by a simple majority following committee stage amendments on certain clauses.

The Supreme Court determination was announced by the Deputy Speaker in Parliament on Tuesday (7).

He said that the Supreme Court determined that a series of clauses in the bill must be passed by a special majority, however, if those clauses are amended in the committee stage, the bill can be passed by a simple majority.

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G7’s top diplomats discuss long-term plan for Gaza

 

High Representative of the European Union for Foreign Affairs and Security Policy Josep Borrell, Britain's Foreign Secretary James Cleverly, Germany's Foreign Minister Annalena Baerbock, US Secretary of State Antony Blinken, Japan's Foreign Minister Yoko Kamikawa, Canada's Foreign Minister Melanie Joly, France's Foreign Minister Catherine Colonna, and Italian Foreign Minister Antonio Tajani, pose for a group photo session during the G7 Foreign Ministers Meeting at the Iikura Guest House in Tokyo, Japan, 8 November 2023. [EPA-EFE/Eugene Hoshiko / POOL]

G7 இன் உயர்மட்ட இராஜதந்திரிகள் காஸாவுக்கான நீண்டகாலத் திட்டத்தைப் பற்றி விவாதிக்கின்றனர்

செவ்வாய்க்கிழமை (நவம்பர் 7) அன்று  G7 வெளியுறவு அமைச்சர்கள் காசா மோதல்கள் ஓய்ந்ததற்குப் பின்னரான நிலைமை  என்ன? மற்றும் மத்திய கிழக்கில் அமைதி முயற்சிகளுக்கு புத்துயிர் அளிப்பது எவ்வாறு என்று விவாதித்ததாக தலைமை நாடு -ஹோஸ்ட்- ஜப்பான் தனது அறிக்கையில் தெரிவித்துள்ளது.

புதன்கிழமையன்று இஸ்ரேல்-ஹமாஸ் போர் பற்றிய கூட்டறிக்கையை அமைச்சர்கள் வெளியிட உள்ளனர். மற்றும் முற்றுகையிடப்பட்ட காசா பகுதிக்குள் மனிதாபிமான உதவிகளை அனுமதிக்கும் பொருட்டு போரில் தற்காலிக இடைநிறுத்தங்களுக்கு அழைப்பு விடுப்பார்கள் என்று எதிர்பார்க்கப்படுகிறது.

பாலஸ்தீனிய போராளிக் குழுவான ஹமாஸின் போரளிகள் அக்டோபர் 7 அன்று தெற்கு இஸ்ரேல் மீதான தாக்குதலுடன் மோதலைத் தூண்டியதில் இருந்து, நெருக்கடி குறித்த பணக்கார நாடுகளின் குழுவின் இரண்டாவது கூட்டு அறிக்கை இதுவாகும்.

டோக்கியோவில் இரண்டு நாள் கூட்டத்தின் முடிவில் வெளியிடப்படும் இந்த அறிக்கை, மத்திய கிழக்கில் சுழல் மோதல் இருந்தபோதிலும் ரஷ்யாவுடனான அதன் போரில் உக்ரேனுக்கான G7 ஆதரவு குறையாமல் உள்ளது என்பதை மீண்டும் வலியுறுத்தும்.

G7 பிளவுகள் ஐக்கிய நாடுகள் சபையிலும் தெளிவாகத் தெரிகிறது, அக்டோபர் 26 அன்று மோதலில் மனிதாபிமான போர் நிறுத்தத்திற்கு அழைப்பு விடுக்கும் தீர்மானத்திற்கு ஆதரவாக பிரான்ஸ் வாக்களித்தது, அமெரிக்கா அதை எதிர்த்தது, குழுவின் மற்ற உறுப்பினர்கள் வாக்களிக்கவில்லை.

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G7 foreign ministers on Tuesday (7 November) discussed what happens after the Gaza conflict recedes and how to revitalise peace efforts in the Middle East, the host Japan said in its statement.

The ministers are set to issue a joint statement on the Israel-Hamas war on Wednesday and are expected to call for temporary pauses in fighting to allow humanitarian aid into the besieged Gaza Strip.

It would mark only the second joint statement from the group of wealthy nations on the crisis since gunmen from the Palestinian militant group Hamas sparked the conflict with a 7 October attack on southern Israel.

The communique, to be issued near the end of a two-day meeting in Tokyo, is also likely to reiterate that G7 support for Ukraine in its war with Russia remains undimmed despite the spiralling conflict in the Middle East.

“We hope to be able to present a united G7 position on the situation in the Middle East in the G7 Foreign Ministers’ Statement, which we understand is currently being coordinated,” said Japan’s Chief Cabinet Secretary Hirokazu Matsuno.

The issue of humanitarian pauses in the conflict was raised at a working dinner attended by ministers from Britain, Canada, France, Germany, Italy, Japan, the United States and the European Union on Tuesday, host Japan said in a statement.

Wednesday’s communique is expected to include a call for such pauses, temporary breaks in fighting to allow aid into the besieged enclave, several Japanese media outlets reported.

Israeli Prime Minister Benjamin Netanyahu has said Israel would consider “tactical little pauses” but, alongside its close ally the United States and other Western countries, has rejected calls for a ceasefire it says would allow Hamas to regroup.

The G7 has appeared to struggle to agree on a firm, united approach to Israel’s war in Gaza, raising questions over its relevance as a force to tackle major crises.

The only other G7 statement came after a meeting of its finance ministers on 12 October and amounted to a few, brief sentences. Other group members have issued joint statements.

G7 divisions have also been evident at the United Nations, with France voting in favour of a resolution calling for a humanitarian truce in the conflict on 26 October, the US opposing it and the group’s other members abstaining.

Long-term plan

The ministers on Tuesday also discussed what happens after the Gaza conflict recedes and how to revitalise peace efforts in the Middle East, Japan said in its statement.

It gave no details of options being discussed if the Hamas militant group is ousted from Gaza as the result of the Israeli bombardment of the Palestinian enclave.

Israel has been vague about its long-term plans for Gaza. In some of the first direct comments on the subject, Netanyahu said this week that Israel would seek to have security responsibility for Gaza “for an indefinite period”.

But Israeli Foreign Minister Eli Cohen told the Wall Street Journal that Israel wanted the territory to be under an international coalition, including the US, European Union and Muslim-majority countries, or administered by Gaza political leaders.

Diplomats in Washington, the United Nations, the Middle East and beyond have also started weighing the options.

Discussions include the deployment of a multinational force to post-conflict Gaza, an interim Palestinian-led administration that would exclude Hamas politicians, a stopgap security and governance role for neighbouring Arab states and temporary UN supervision of the territory, Reuters reported this month.

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