Sri Lanka to finalize Hambantota port deal by next month

Nov 18, 2016 (LBO) – Sri Lanka expects to finalize the deal with regard to the loss-making Hambantota port within three weeks, Ports Minister said. Minister Arjuna Ranatunga told Parliament Friday that under the new arrangement, the port will be operated as a PPP venture project between Sri Lanka and Chinese investors.

“A Chinese company valued the port around USD750mn; but we have obtained USD1.5bn loan with a high interest rate to build this port,” Ranatunga said. “We are currently negotiating with them to get the best benefit to our country.” Central Bank Governor recently said Sri Lanka could expect a one billion dollar inflow to the economy through the sale of an 80 percent stake in the Hambantota Port. Debt-ridden Hambantota port built by ousted Rajapaksa regime has incurred a loss of over 37 billion rupees for the past seven years.