Sri Lanka to hand Hambantota port to Chinese firm, receive $300 million
Sri Lanka will hand over commercial activities in its main southern port to a Chinese company on Saturday (9) and receive around $300 million out of a $1.1 billion deal soon after, Ports Minister Mahinda Samarasinghe said.
The deal, signed in July, will see China Merchants Port Holdings (0144.HK), handling the Chinese-built Hambantota port on a 99-year lease.
“After one month, we will be getting another 10 percent ($100 million) and in six months we will get the balance,” Samarasinghe told reporters in Colombo.
The Chinese firm last year agreed to pay $1.12 billion for an 80 percent stake in Hambantota port, which is located near the main shipping route from Asia to Europe.
But the deal triggered protests by opposition groups and trade unions, saying they feared China would take control of the port.
Government and diplomatic sources told Reuters that the United States, India and Japan had also raised concerns that China might use the port as a naval base.
Both sides then agreed to redraw the deal and the Chinese firm will now hold 70-percent-stake in a joint venture with the state-run Sri Lanka Ports Authority (SLPA), part of a plan to convert $6 billion of loans that Sri Lanka owes China into equity.
Sri Lanka has said the Chinese firm will invest an additional $600 million to make Hambantota port operational and $1.12 billion from the deal will be used for debt repayment.
India is in advanced talks with Sri Lanka to operate an airport near Hambantota port.
(Reuters)
Latest Headlines in Sri Lanka
- Public oral feedback on Sri Lanka’s electricity tariff amendments starts today December 27, 2024
- Sri Lanka launches program to digitize all Government payments December 27, 2024
- Sri Lankan woman dies after emergency plane landing in Erbil December 27, 2024
- Former Indian Prime Minister Manmohan Singh dies at 92 December 26, 2024
- Sri Lanka welcomes 2 millionth tourist, marking historic milestone December 26, 2024
Very good. They will (and have the wisdom and capability) put it to good use. Sell the Hambanthota airport to them as well. Only the ling Ibban in Sri Lanka are unable to see the potential.
Yes, sell everything. Import Rice, Now importing Coconuts; our new constitution is US made. National airline is running at a loss. Anything Sri Lankans can do? We are an incapable nation. Before long SL will invite tenders from foreign countries to establish Sperm Banks here (because for that too we will be incapable). Shame!
Mr Amarakoon . Please excuse my ignorant and explain to me why a country with so many educated engineers, Scientist, Accountants, going down on the slippery slope. The economy is deteriorating so much, the only way to survive is to sell countries assets. Every corner there is a private tuition center full up with students in addition to the knowldge gain from there schools or colleges. I have been to many countries and I haven’t seen children studying like these. I want get it.
Amarakoon Anything Sri Lankans can do? Well here are few things they can do. Bribery, corruption, fraud,
surfing indecent sights (according to googal we are the best in the world) , Almost ever body carry a lap top on there shoulder for that reason. cramming books and obtaining worthless degrees which does not worth the paper it is written on, meaningless demonstrations blocking all the roads, raging in universities which is unheard in any other universities in the world., exporting road sweepers and toilet cleaners to the word. What more you want