The Hambantota port was built with the help of Chinese loans and contractors in 2010 under former president Mahinda Rajapaksa, but the port has not been financially viable with around 60 percent of Colombo port’s profits being used to maintain the Hambantota port.
Hambantota port has been seen as a white elephant . Good Governance Government has successfully negotiated with the Chinese investors to sell 80 % of the Hambantota Port shares to the Chinese state owned company called China Merchant Holdings for US dollars 1.12 billion in January and to utilized the funds to strengthen the country’s foreign reserves and re pay the high interest foreign loans .
Under this project following works will be carried out.
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Expecting special economic zones attached to port would bring in US$ 9.5 billion worth of investment next 5-6 years.
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Establishment of a cement plant , an LNG plant , an oil refinery and a dock yard planned within the 1,200 acre port
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China Merchant Holdings under took to invest US$ 500- 600million on Port equipment .
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About 95%of the 15,000 acres identified for Chinese led economic zone in Hambantota area crown land.
