Last Updated : 2019-01-22 16:20:44

Apps Advertising Home Delivery Feedback

Sri Lanka to hand port to Chinese firm, receive US $ 300mn

8 December 2017 12:05 am - 0     - {{hitsCtrl.values.hits}}

A A A

REUTERS: Sri Lanka will hand over the commercial activities in its main southern port to a Chinese company on Saturday and receive around US $ 300 million out of a US $ 1.1 billion deal soon after, Ports Minister Mahinda Samarasinghe said.


The deal, signed in July, will see China Merchants Port Holdings, handling the Chinese-built Hambantota port on a 99-year lease.


The Chinese firm last year agreed to pay US $ 1.12 billion for an 80 percent stake in the 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 a 70-percent-stake in a joint venture with the state-run Sri Lanka Ports Authority (SLPA), part of a plan to convert US $ 6 billion of loans that Sri Lanka owes China into equity.


Sri Lanka has said the Chinese firm will invest an additional US $ 600 million to make the Hambantota port operational and US $ 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 the Hambantota port.

 

  Comments - 0


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment


TWISTS AND TURNS in the Dr. Shafi controversy

The sterilization charges against Dr. Seigu Shihabdeen Mohamed Shafi from the

Islamic State in Iraq and Syria (ISIS) An in-depth look at ISIS

As the people and Government of Sri Lanka reel with shock and grief in the wa

Mahela declines to be part of Sri Lankan team Management at cricket World Cup

Weeks after guiding Mumbai Indians to their fourth IPL title--his second in t

EASTER SUNDAY BOMBINGS AND their IMPACT

A series of bombings struck churches and hotels in Sri Lanka on Easter Sunday

MIRROR CRICKET