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.