Sri Lanka finalises $1.12 bn port deal with China

[defence_analyst]

AFP - Sri Lanka's government Tuesday approved the sale to China of a majority stake in a loss-making but strategically-sited deep sea port for more than a billion dollars, the ports minister said.

The cabinet gave final approval to sell a 70 percent stake in Hambantota port for $1.12 billion to state-owned China Merchants Port Holdings, minister Mahinda Samarasinghe told reporters.

The Chinese will manage the port operations and the Sri Lankans the port security, the minister said. That, he added, should allay fears that the port could be misused by the Chinese.

Hambantota port straddles the world's busiest east-west international shipping lane across the Indian Ocean and some nations have raised concerns that it could become a military hub for the Chinese.

"Security of the port will not be given to anyone else. It will be handled 100 percent by Sri Lankans," Samarasinghe said.

He said foreign naval vessels could call at Hambantota as they did at the main port in the capital Colombo.

"We will not provide special treatment to any country. We want to maintain good relations with all and we don't want to antagonise anyone," Samarasinghe said.

"We don't envisage giving special treatment to any one country like during the previous regime," he said referring to a 2014 incident when two Chinese submarines called at Colombo -- the only time any foreign submarines had stopped there.

The call angered neighbouring India, which considers Sri Lanka to be within its sphere of influence and has been suspicious of China's increasing interest in investing in the island's infrastructure, including its sea and air ports.

The previous government took a $8 billion loan from the Chinese to build the port -- a commercial failure which does not even generate enough revenue to pay staff salaries -- and other infrastructure.

The new government, which came to power in January 2015, has been trying to renegotiate the terms of the loan.

Samarasinghe said Hambantota port needed a fresh capital injection of $600 million to make it viable, but Colombo could not afford the investment and was banking on the Chinese to turn around the business.
http://www.economynext.com/Sri_Lanka_finalises_$1.12_bn_port_deal_with_China-3-8390-6.html

 

[CAD]

https://twitter.com/x/status/890118928550301696

 

[shahbaz baig]

China Merchant Port to invest up to US$1.12b in Sri Lanka’s Hambantota Port in revised deal

State-owned Chinese firm to take 80pc stake in port which is likely to play a strategic role in the ‘Belt and Road Initiative’

State-owned China Merchant Port Holdings is investing up to a US$1.12 billion to develop, manage and operate Sri Lanka’s Hambantota Port, close to the world’s busiest shipping lanes, in a revised agreement with the Colombo government.

China Merchant said it will take a 80 per cent stake in Hambantota International Port Group with the rest held by Sri Lanka Ports Authority. Sri Lanka’s cabinet cleared the revised agreement on Tuesday.

A deal was struck between the two sides late last year to further develop the port, located on the southern coast of the island.

Under the original agreement, the Sri Lankan government will also lease a total of 15,000 acres for a proposed industrial zone at the port.It has also sought to limit China’s role to running commercial operations at the port while it has oversight of broader security.

The project, however, has been controversial. Sri Lankans took to the streets to protest over a fear of loss of land, and opposition politicians have claimed the scale of land transfer to the Chinese is a risk to national security.


According to a company filing, China Merchant Port has agreed to reduce a maximum of 20 per cent in its stake in the joint venture to 65 per cent within a decade.

The Port of Hambantota occupies a prime location within 10 nautical miles of the main shipping route from Asia to Europe and is also likely to play a strategic role within China’s “Belt and Road Initiative”.

It isn’t the first time that China Merchant has invested in debt-ladden Sri Lanka’s assets, after becoming the largest foreign investor in the port of Colombo. It developed the Colombo International Container Terminal, which covers a total quay length of 1,200 meters and a depot land area of 58 hectares.

The revised Hambantota deal comes weeks after President Maithripala Sirisena reshuffled his cabinet, naming Mahinda Samarasinghe ports minister after his predecessor had strongly opposed the majority equity stake for the Chinese firm, even raising a red flag over its possible military use.

 

[shahbaz baig]

India Today's cover

let them make a fun they have nothing to do expect making a fun. they should have right to smile atleast

tell them that Sri Lanka is China's Egg

Sri Lanka sell 80% stake in the hambantota port to the China

 

[Hakikat ve Hikmet]

Another Chinese post overlooking another important corner of India. Looks like the Chinese folks are leaving nothing to chances. I have always known, owing to my 30 years of association with the yellow folks, that they are thorough. But, this time they have taken to the next level!!!! OBOR is being secured post by post.....

 

[Saif-ud-Din Qutuz]

Another Chinese post overlooking another important corner of India!!!! Looks like the Chinese folks are leaving nothing to chances!!! I have always known owing to my 30 years of association with the yellow folks that they are thorough!!!! But, this time they have taken to the next level!!!!

Absolutely! Chinese people are up for something really big and long lasting.

 

[Guynextdoor2]

Sri Lanka 'restructures' Humentota port deal. The deal was already finalized. Now they've stripped out parts of the port from chinese hands and limited it to a purely commercial operations.

 

[Han Patriot]

Hambantota is actually extremely strategic, let's hope Rajapaksa win the next election, he will go full force on Chinese militarization of SL.

 

[Beast]

Hambantota is actually extremely strategic, let's hope Rajapaksa win the next election, he will go full force on Chinese militarization of SL.

China will send in special forces to kill those RAW agent first to ensure Rajapaksa win next elections.

I can be sure those protest on street against China in Sri Lanka is orchestrated by RAW agent too.

 

[protest]

China will send in special forces to kill those RAW agent first to ensure Rajapaksa win next elections.

I can be sure those protest on street against China in Sri Lanka is orchestrated by RAW agent too.

You have no idea about dynamics of India-Srilanka relations.

 

[Han Patriot]

You have no idea about dynamics of India-Srilanka relations.

We just destroyed the motor of that dynamics, LTTE. Even Srisena is playing middle ground now, he fired the anti China ports minister so the deal can go on.

 

[Sada Hussain]

Now this is going to be another great game but this time, it will not be an easy job for US to counter China. No matter how much investment and dollars US puts on India, yet breaking Chinese Defense has become far more difficult than ever. When I was learning Chess, every game was lost by me. Someone said that the key to win the game is to first ensure the strong defense and then make your moves. Back to the point, at one spot, US is busy in containment of China in East and South China Seas, whereas the China is rapidly growing its power in all other Asian countries. I guess, the big move is yet to come.

 

[RIP Pak LAW]

Congrats to both Sri Lanka and China despite of so much negative media campaigned by India.

 

[protest]

We just destroyed the motor of that dynamics, LTTE. Even Srisena is playing middle ground now, he fired the anti China ports minister so the deal can go on.

If not for India's implicit consent, LTTE still would have been present even today. And Srilankans know it. As for middle ground, it came down from high pro-china to this.

 

[B2B]

I think none of you understood or read the deal and are jumping up and down.

Sri Lanka officially just kicked out Chinese military presence and limited to only commercial vessels.
The revised agreement has a clause where it mentions that no Chinese military object must use the area or premises and entire security responsibility lies with Sri Lanka only.


And the cheerleaders started their daily jig , go on live in fantasy land , cheer for the Chinese military getting kicked out of the area.