China, Sri Lanka sign historic $1.1 billion deal over southern port

By APD Writer Jamila Husain

**COLOMBO, July 29 (APD) - ** China and Sri Lanka on Saturday signed a historic 1.1 billion dollar agreement on further building and running the Hambantota port in South Sri Lanka.

The deal was signed between the Sri Lanka Ports Authority and China's state owned China Merchants Port Holdings.

At a ceremony in Colombo, Sri Lankas Ports Minister Mahinda Samarasinghe hailed the agreement as one which would help Sri Lanka financially and said this would transform Hambantota into a global shipping hub.

He said both China and Sri Lanka would venture on this new journey together

and China

Merchants Port Holdings had agreed to conduct all its functions according to the laws of Sri Lanka while Sri Lanka will be controlling the security of the Port.

"This is a historic day for us today as Sri Lanka and China venture on a new journey to develop the Hambantota Port," Samarasingha said.

"After many rounds of discussions between the Sri Lankan government and China Merchant Port Holdings, we finally agreed to sign on the deal. Through this deal China will bring in 1.12 billion US dollars into Sri Lanka," Samarasingha added.

Executive

Vice President of China Merchant Group (CMG), Dr.Hu Jianhua, said that the Hambantota port built with Chinese expertise will be a significant part of Chinas One Belt One Road (OBOR) global communications project.

"With these maritime infra-structure investments, and other diverse investments such as the proposed international maritime centre, Sri Lanka will be well positioned to play a strategic role in the China proposed One Belt One Road initiative," Dr Hu said.

The deal was signed on Saturday by the Sri Lanka Ports Authority (SLPA) and the China Merchant Port Holdings Company (CMPort) in the presence of the Sri Lankan Ports Minister Samarasinghe, Finance Minister Mangala Samaraweera, and Senior Minister of Special Projects, Dr. Sarath Amunugama.

The deal will give CMPort a 70 percent stake of the Hambantota Port while Sri Lanka will own 30 percent.

(ASIA PACIFIC DAILY)