Sri Lanka, China sign Hambantota port deal worth ₹10000 crore

Jul 31, 2017, 00:27
Sri Lanka, China sign Hambantota port deal worth ₹10000 crore

Sri Lanka agreed to sell 70 percent of the stakes in the port to China Merchants Ports Holdings.

Sri Lanka on Saturday, July 29, signed a $1.1 billion deal with China to lease the southern Hambantota port to Beijing, after several months of delay caused by protests.

Sri Lanka's government says money from the deal will help repay foreign loans.

Secretary to the Ministry of Ports and Naval Affairs, L.P. Jayampathi and Chairman of Sri Lanka Ports Authority, Parakrama Dassanayake signed the agreement representing Sri Lanka while the Vice Chairman of China Merchant Port Holdings, Dr. Hu Jianhua signed the agreement representing the Chinese government.

The Cabinet approved the agreement Tuesday after a almost six-month delay since the framework deal was signed and immediately drew public criticism and protests.

Under the new deal, which Reuters has examined, the Sri Lankan government has sought to limit China's role to running commercial operations at the port while it has oversight of broader security.

The port, close to the world's busiest shipping lanes, has been mired in controversy ever since state-run CMHC, which built it for $1.5 billion, signed an agreement taking an 80 per cent stake. "How can they face it (the debate) when it was they who started it", Wickremesinghe said, referring to former president Mahinda Rajapaksa's joint Opposition.

The port has racked up losses of $300 million in the last six years, according to official figures. It is seen as part of Beijing's so-called "string-of-pearls plan" for a line of ports stretching from its waters to the Persian Gulf. Now, Sri Lanka is unable to repay those loans.

China's influence in Sri Lanka makes neighboring India anxious because it considers the Indian Ocean region to be its strategic backyard.

"The government has the ability to amend the agreement in future as a result of a clause added to the agreement by President Maithripala Sirisena".

The Sri Lankan government has revised the deal to set up two companies to split the operations of the port and allay concerns, in India mainly but also in Japan and the United States, that it won't be used for military purposes.

YOU MIGHT ALSO LIKE
  • Tesco PLC 37.8% Potential Upside Indicated by Deutsche Bank

    Tesco PLC 37.8% Potential Upside Indicated by Deutsche Bank

    The Firm operates through four divisions: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. The shares were acquired at an average price of GBX 26 ($0.34) per share, with a total value of £1,468.48 ($1,913.08).
    Reliance Disruption: Jio Launches A Zero Priced Feature Phone

    Reliance Disruption: Jio Launches A Zero Priced Feature Phone

    New entrant to the telecom sector Reliance Jio , now entered the feature phone market with its very first VoLTE feature phone. And JioPhone will be physically available to those who have pre-booked, on a first come first serve basis, September onwards.

    Live streaming and where to watch in India

    Apart from her, Deepti Sharma and Mithali Raj added some crucial runs as India enhanced the misery of the defending champions. India has high hopes from Sangli opener Smriti Mandhana along with Harmanpreet, Deepti Sharma and Poonam Yadav.
  • Does US-N. Korea bill risk China relationship?

    Does US-N. Korea bill risk China relationship?

    One possible stumbling block is whether the new resolution will refer to North Korea's ICBM test. North Korea responded with its usual aggressive rhetoric.
    Man Utd target included in Barcelona shortlist to replace Neymar

    Man Utd target included in Barcelona shortlist to replace Neymar

    If he leaves Barcelona I wish him all the luck in the world, and if he stays, as well. Wherever he plays the next few years, he will be great.
    Audit slams Railways on food quality

    Audit slams Railways on food quality

    The CAG, in a report tabled in Parliament on Friday, said its audit indicated "total understatement of adjusted gross revenue (AGR) of Rs. 61,064.56 crore" by six operators.
  • Season of Big Bash was expanded

    Season of Big Bash was expanded

    Female Rebel BBL starts their season from the 9th f December, which is 10 days earlier from the male season of KFC BBL games. Fans of cricket across the world can see the online stream at the official Australian cricket website, and throw its app.
    United States  pledges $140 million to Lebanon in Syrian refugee aid

    United States pledges $140 million to Lebanon in Syrian refugee aid

    The US has long condemned the group, and it has been a designated foreign terrorist organisation by the US since 1997. With the support of Iran, the organization is also fueling humanitarian catastrophe in Syria.
    Anne Hathaway in talks for Barbie movie

    Anne Hathaway in talks for Barbie movie

    The film is expected to be rated PG, and in the mould of a broad family comedy along the lines of Splash, Enchanted and Big . Hathaway can do comedy very well and she's not afraid to take the piss out of herself either, so yeah, this could work.
  • Unknown gunmen attack home of Kenya deputy president

    Unknown gunmen attack home of Kenya deputy president

    Ruto is the running mate of President Uhuru Kenyatta, who is seeking a second and final term in office in the august 8 elections. The intruder was later forced to hide at a building under construction after reinforcement was called, added the IG.
    New press secretary reads Trump fan mail at press briefing

    New press secretary reads Trump fan mail at press briefing

    There are different estimates of Trump's wealth out there, but they're just that - estimates. Wednesday was a "two for the price of one" day for conservative supporters of Donald Trump .
    Facebook to launch their own speakers gadget with touch

    Facebook to launch their own speakers gadget with touch

    Amazon recently started selling a similar speaker called the Echo Show that features a large display . All this information comes from the sources in the supply chain of the product.
popular