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BY APD writer Jamila Husain
**COLOMBO, July 25 (APD) ** - Sri Lanka and China have finalized an agreement to strengthen the operations of the Hambantota Port, in southern Sri Lanka with China owning a 70 percent stake of the Port while Sri Lanka will own 30 percent, Sri Lanka's Ports Minister Mahinda Samarasingha said here Tuesday.
Speaking at a media briefing in Colombo, Samarasingha said that cabinet had granted approval to enter into an agreement with China Merchants Port Holdings and the agreement will likely be signed on Saturday.
He said the matter will also be discussed in Parliament on Friday and all legislators will be briefed about the agreement signed between the two countries.
"This agreement will be a win-win situation for both China and Sri Lanka. We hope to strenghten the operations of the Hambantota Port which will be beneficial for Sri Lanka," Samarasingha said.
China will invest 1.12 billion US dollars for its 70 percent stake and will also manage the operations of the Port. Sri Lanka will manage the security of the Port along with the navigation and approvals.
Samarasigha said all foreign naval vessels could call at Hambantota Port as they did at the main port in the capital Colombo as the island country wanted to maintain good relations with all countries.
He added that although negotiations with China Merchants Port Holdings took a long time, all matters regarding the agreement had been thoroughly discussed for the benefit of both China and Sri Lanka.
He further explained that after 10 years, if Sri Lanka wished to purchase an additional 20 percent stake of the Port, they could do so by purchasing it, resulting in China and Sri Lanka owning an equal share of 50 percent each.
China is Sri Lanka's largest Foreign Direct Investor with many mega projects including the construction of a 1.4 billion dollar Port City close to the Colombo Harbour.
China has invested millions of dollars towards the economic development of the island country, along with infrastructure development, educational development, cultural development, housing development and tourism.
(ASIA PACIFIC DAILY)
