China Officially Starts to Rule Hambanthota Port Today
The maintenance and management of the Hambantota port by Chinese management will officially begin today (10).
Sri Lanka’s Cabinet of Ministers approved the signing of an agreement of share ownership before commencing operations in the Hambanthota Port following parliamentary sessions on December 6.
On July 29, the amended agreement to expand and develop the Hambantota Port under a public-private partnership was signed between the Sri Lanka Ports Authority (SLPA) and China Merchant Port Holdings (SM Port), Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS).
Accordingly, the two companies established to develop the port, namely Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS), are scheduled to commence respective operations, according to the said agreement, on December 09, 2017.
As per the agreement, 85% of the shares of Hambantota International Port Group will be held by China Merchants Port Holdings Company Limited or any of its subsidiaries while 15% will be held by the state-owned SLPA.
Meanwhile 58% of the shares of the Hambantota International Port Services will be controlled by HIPG while 42% will go to the SLPA.