China Merchant Port Holdings pays final tranche of US$ 584 million for its lease of Sri Lanka’s Hambantota Port
Chinese global port operator China Merchant Port Holdings Limited (CM Port) has reportedly paid Sri Lanka the final tranche of US$ 584 million for its lease of the Hambantota Port in the country’s southern coast.
“With this payment, CM Port fulfils the US$976 million investment value of the port concession,” the Sri Lanka Ports Authority (SLPA) has said in a statement.
The statement has noted that in terms of the Concession Agreement, CM Port has agreed to deposit a further sum of US$ 146 million to be utilized for port and marine related activities.
“CM Port is one of the most successful global companies in the ports sector, and their investment in the Port of Hambantota can be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka,” SLPA Chairman, Parakrama Dissanayake has been quoted as saying in the local media.
According to reports, in December 2017 two Sri Lankan companies established under the concession agreement, Hambantota International Port Group (HIPG) and Hambantota International Port Services Co. (Pvt) Ltd. (HIPS) officially took over the Hambantota Port.
The two companies established plan further investments of an additional US$ 400 – 600 million on phase I and II of the Hambantota Port.
“These investments will attract many other foreign investors to the country, making Sri Lanka a pivotal maritime and logistics centre,” the SLAP statement has also noted.
OSL take:
The large scale investments by the Chinese in Sri Lanka indicate the strong ties between the two nations and the growing business opportunities through Sino-Lanka ties. The development of the Hambantota Port by the Chinese would result in further Chinese investments entering the island nation through the industrial zone that would be established within the port premises. Given the increasing investments opportunities in Sri Lanka, interested foreign businesses/investors could look at business/investment projects in the island nation.
| Article Code : | VBS/AT/20180629/Z_1 |