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Sri Lanka, China sign deal to develop Hambantota Port
July 30 , 2017
2673 days
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• An agreement with 99 years validity, to develop Hambantota Port in southern Sri Lanka has been signed between Srilanka and China.
• According to the deal, the Chinese side will hold a 70 percent stake.After 10 years, the Sri Lankan side will gradually purchase an additional 20 percent stake, resulting in the two sides owning an equal share of 50 percent each.
• The project to set up an international port in Hambantota was launched by the Rajapakse government in 2008. The construction of the first phase began with the assistance of the Chinese Government Company in 2008 and ended in 2010. China was keen on its stake in Hambantota. There were concerns that Chinese naval vessels would use the Hambantota port. Following this , the second phase of port’s modification was modified.
• Now, the government of Prime Minister Ranil Wickremesinghe finalised an agreement to sell an 80% stake of the Hambantota Port's operations to China Merchant Ports Holding Company Ltd.
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