CM Port Holdings to commence paying installments for Sri Lanka’s Hambantota Port deal
A spokesperson of the Sri Lankan government has been quoted in the local media as saying that China Merchants Port Holdings (CM Port) has agreed to increase its first installment payment for leasing Sri Lanka’s southern Hambantota Port to 30% from 10% of the US$ 1.1 billion deal.
The Chinese port operator has reportedly agreed to change the agreement it signed with the government to develop Hambantota Port which was built and funded by China.
Sri Lanka’s Cabinet of Ministers has approved a proposal by Minister of Ports and Shipping Mahinda Samarasinghe for amending the deal, the spokesman told a news conference.
Under the previous deal, US$ 5 million has already been deposited to a special account as security to be transferred to Sri Lanka Ports Authority on the effective date of the agreements.
A first installment of 10% was to be paid after one month from the effective date. This will now be increased to 30%.
CM Port has agreed to amend the deal to pay another 10% after one month as the second installments and to pay the balance 60% within six months.
CM Port agreeing to increase its installment payments to Sri Lanka indicates a continuous inflow of foreign exchange to the country resulting in a growth in the country’s economy. The positive move in the economy in turn would help increase investor confidence in the country.
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