30 November 2016 12:05 am
The sales proceeds from the sale of the Hambantota port to an undisclosed Chinese party is expected to be received from January 2017, according to the Central Bank Governor.
The proceeds from the 80 percent sale of the port built in southern part of Sri Lanka using moneys borrowed from China, will be in three installments – US $ 108 million in January another US $ 300 million in March and the balance in June 2017.
The Central Bank Governor, Dr. Indrajit Coomaraswamy told reporters that the proceeds would be utilized for better liability management as some of the existing loans could be settled.
In addition, this would also improve the liquidity in domestic money markets when converted into rupees. In any case, the moneys will strengthen the foreign reserves until such time the existing foreign loans
are repaid.
Despite the ruling party politicians trying to portray the deal as a debt-to-equity swap, the Governor said this was a sale of 80 percent of the assets of the port under a 99–year lease.
Meanwhile, the negotiations to sell the airport built in Mattala are also underway but the specifics are yet to be known.
According to Dr. Coomaraswamy, China has expressed its willingness to invest up to US $ 8.0 billion during an unspecified period.
Further. 2,500 to 3, 000 Chinese companies have also expressed their interests in investing in the country for whom a 15, 000 acres will be allocated for an economic zone.