The signing was witnessed by President of ADB Takehiko Nakao and Finance Minister Ravi Karunanayake.

"The terminal will maintain Colombo Port's strategic position as a key trans-shipment hub for global and regional trade," said Sri Widowati, ADB's Country Director for Sri Lanka. "The project will bring leading operations and technology from the private sector to improve the port's value proposition to global shipping lines and increase its market share in the global trans-shipment market."

The $500 million project will include operationalization of the existing 400 meters of deep water berth and the full design, build, finance, operation, and maintenance of the remaining 800 meters of berth. The concession for the ECT is likely to be for 35 years.

SLPA has already invested $80 million in construction of the 400-meter berth at the terminal. ADB also provided a $300 million loan in 2008 to support the construction of the breakwater of the Colombo Port.

"ADB will advise SLPA in developing a bankable PPP structure and organizing a competitive tender process to select the private sector partner," said Ryuichi Kaga, Head of ADB's Office of Public-Private Partnership (OPPP). "A transparent competitive tender process is expected to deliver the best value for SLPA for the construction and operations of the terminal and can help create a new template for structuring and delivering PPPs in Sri Lanka."