Renegotiation of Hambantota Port Project With China

Ports and Shipping Minister Mahinda Smarasinghe said, that discussions had been arranged on Hambantota Port Development Project (HPDP) agreement with China Merchants Port Holdings Co. Ltd (CM Port) on Friday (2). He affirmed the debt to equity swap of US$1.4 billion  is necessary to ease Sri Lanka’s debt servicing and strengthen foreign reserves.

The Minister said he would try his best to make the US$1.4 billion joint venture to be based on a 60 – 40, 70 – 30 or even a 51 – 49 percent equity swap. He assured  that there would be no selling or leasing of 15,000 acres of land to China for 90 years in the Hambantota district to set up an exclusive economic zone. Definitely,  it will be less than 90 years. There will be new clauses and a new agreement within the laws of the land, he concluded.