Daily Current Affairs – 2020
Topic: For Prelims and Mains
Sri Lanka approved the “West Container Terminal” Proposal
What is the News?
The Sri Lankan Cabinet has approved a proposal to develop Colombo Port’s West Container Terminal(WCT) under a joint venture with India and Japan.
Note: This proposal comes after Sri Lanka had pulled out of the 2019 tripartite agreement with India and Japan to develop the East Container Terminal(ECT).
About the West Container Terminal(WCT) Project:
- Location: The West Container Terminal(WCT) is strategically located next to a Chinese-run Colombo International Container Terminal(CICT).
- Model: The terminal will be developed on a Build, Operate and Transfer(BOT) model for a period of 35 years.
- Investors: For the project, Sri Lanka has asked India and Japan to nominate the investors. But neither India nor Japan has officially commented on the offer.
Earlier, India had approved Adani Ports to invest in the ECT project. However, Japan is yet to name an investor.
- Stakes in WCT: India and Japan will have an 85% stake in the West Container Terminal.
- It is similar to the terms set for the Colombo International Container Terminal(CICT) where China holds an 85% stake.
- Moreover, India and Japan stake in the WCT is better than the earlier deal on the ECT – where they had a 49% stake.
Facts For Prelims:
Bear market :
A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
Why in news?
Recently investors sold off stocks across the board leading to fall in the stock market indices.
What led to the sell-off in Indian market?
- Earlier, US 10-year bond yield climbed to 1.614% which was highest in a year due to concerns over inflation in the country.
- Due to this US Federal Reserve had to either lower the monthly bond-buying or to hike the interest rates.
- This affected the India markets as it is the major recipient of foreign inflows.
- The rising crude oil prices and increasing geopolitical tension between US and Syria also raised concerns among the investors.
- Moreover GDP data for the 3rd quarter which is yet to be released is also adding volatility to Indian market.