NEW DELHI: India is in discussions with the Sri Lankan Government to persuade Colombo to rethink its cancellation of a three way agreement between New Delhi, Colombo and the Government of Japan to develop and operate the East Container Terminal (ECT) of Colombo Port, a foreign ministry spokesman said.

The pact was signed in 2019 with India and Japan holding 49% stake in ECT. The Colombo Port is an important port for trans-shipment of goods coming to India. But earlier this month, Sri Lankan Prime Minister Mahinda Rajapaksa said that the operation of the east terminal would be done by Sri Lanka Ports Authority. News reports say that the Sri Lankan government’s move came in the wake of intense protests from port employees’ unions with other unions also joining the campaign demanding the cancellation of the pact with India.

“As is well known, the Governments of India, Sri Lanka and Japan had signed a Memorandum of Cooperation in May 2019 to develop and operate the East Container Terminal of Colombo Port in a trilateral framework,” Indian foreign ministry spokesman Anurag Srivastava said in New Delhi.

“We sincerely believe that the development of infrastructure in Sri Lanka, in areas such as ports and energy, with foreign investment from India and Japan will be a mutually beneficial proposition,” he said.

“Our High Commissioner in Colombo (Gopal Baglay) is in discussion with the Government of Sri Lanka, including on the importance of adhering to international commitments,” he added.

India’s response and a similar one earlier this week from the Indian high commission in Colombo is seen as muted as New Delhi works behind the scenes to persuade Colombo to change its decision. Indian Prime Minister Narendra Modi in a message to Colombo on the anniversary of Sri Lanka’s independence this week, referred to the cultural traditions that bound the two countries together. India views the project as important given the increasing profile of China in the island nation that New Delhi sees as traditionally lying within its sphere of influence.

The development of the ECT was a subject discussed by Indian Foreign Minister S Jaishankar when he visited Colombo in January. However days after Jaishankar’s visit, President Gotabaya Rajapaksa had assured port workers that the ECT was not going to be sold or leased, and that there would be an “investment” by India’s Adani Group, news reports said. But the unions were not convinced and continued their protests.