The Cabinet today approved the proposal to lease out the Hambantota Port to China Merchants Company, Ports and Shipping Minister Mahinda Samarasinghe said.
Earlier, it was reported that two separate companies would be formed to deal with administrative and commercial operations of the port.
The majority equity of the company to be formed for administrative operations would be vested with the Sri Lankan side, he said.
However, the Chinese company would possess majority equity in the company proposed for commercial operations of the Port.
By Pradeep Dilrukshana