Hambantota Port agreement to be signed tomorrow – PM

Ranil Wickremesinghe

Prime Minister Ranil Wickremesinghe stated that the Hambantota Port agreement will be signed tomorrow (29).

The amended agreement to lease out Hambantota harbour to a Chinese company was approved by the cabinet last Tuesday (25), after terms of the first pact sparked widespread public anger in the country.

China Merchants Port Holdings will take an 85 percent stake in Hambantota International Port Group that will run the port and its terminals, with the rest held by Sri Lanka Ports Authority. The company’s capital will be $794 million.

A second firm, Hambantota International Port Group Services Co, with capital of $606 million, will be set up to oversee security operations, with the Sri Lankans holding a 50.7 percent stake and the Chinese 49.3 percent, according to the document.

China Merchants Port Holdings also agreed to reduce its stake in the joint venture running the commercial operations of the port to 65 percent after 10 years.

(Ada Derana)