Hambantota Port Deal

Published : 8:45 am  July 17, 2017 | No comments so far |  |  (115) reads | 

Signing 

Next month

Majority equity for administrative operations would be vested with Sri Lanka

Chinese company would possess majority in company’s commercial operations 

By Kelum Bandara
The Government had, more or less, finalised the agreement for leasing out the Hambantota Port to China Merchants and was planning to strike the deal shortly, sources told the  yesterday.

According a government source, two separate companies would be formed to deal with administrative and commercial operations of the port.  The majority equity of the company to be formed for administrative operations would be vested with the Sri Lankan side. Therefore, the source said there would be no need to amend Sri Lanka Ports Authority Act as a requirement to sign the deal.

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However, the source said that the Chinese company would possess majority equity in the company proposed for commercial operations of the Port. It is proposed to hand over 80 percent stake of the port to the Chinese side.

Two separate companies would be formed to deal with administrative and commercial operations of the port

Initially, the Government had decided to sign the agreement in January to coincide with President Maithripala Sirisena’s second anniversary in office.  However, the move met with resistance from sections of port workers and some sections of the general public. 
Legal impediments also arose from Sri Lanka Ports Authority Act. Afterwards, the Government appointed a Subcommittee to work out the criterion for the deal without leading to any legal snag.

The source said the Government was likely to ink the agreement next month.