The Indian Wire » World » Sri Lanka, China sign Hambantota port deal worth ₹10000 crore
World

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

Hambantota port
Sri Lankan government has approved the sale of 70% stake in Hambantota port to China's Merchants Port Holding Co for ₹10000 crore.

Sri Lankan government has finally given its approval to the long delayed Hambantota port deal to sell its 70% stake to China. The deal will help the Sri Lankan government to repay the debt which incurred while building the port. The agreement was signed between Sri Lanka Ports Authority and China Merchants Port Holding Co

The agreement was signed between Sri Lanka Ports Authority and China Merchants Port Holding Co at Sri Lankan capital, Colombo. The initial approval of the deal was made over 6 months ago, however, the government had to delay the proceedings because the initial announcement drew huge criticism and protests from the general public.

Hambantota port started operating in 2011 and since then, the operational cost has experienced huge losses. The government was considering to sell some of its stake and in a bid to increase its dominance over the sea ports in the continent, China came as the frontrunner to buy the stake on sale. China now has its control over a number of ports including in countries like Sri Lanka and Pakistan.

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Kunwar Prithvi Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.

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