by Indika Sri Aravinda
The government is yet to earn a cent from the Hambantota Port agreement, sources told The Sunday Leader. Sources said that as per the agreement there is more to be done on the part of Sri Lanka before it can start making money. Sources at the Sri Lanka Ports Authority (SLPA) said that both Sri Lanka and the Chinese company, with whom Sri Lanka signed the agreement on the port, are looking to meet their part of the deal over the next few months.
The much anticipated signing of the amended Hambantota Port agreement took place on July 29 this year.
Under the agreement the Sri Lanka Ports Authority and China Merchant Port Holdings Company Ltd. will establish the Hambantota International Port Services Co. (Pvt.) Ltd. – with a capital of USD 606 million and 50.7% shares to SLPA and 49.3% to CMPort. The Hambantota International Port Group (Pvt.) Ltd. – with a capital of USD 794 million and 15% shares to SLPA and 85% to CMPort as in SAGT terminal and CICT terminal will also be established.
Accordingly, instead of 80:20 share distribution in the initial agreement, shares of overall investment will be revised as 69.55 to CMPort and 30.45 for SLPA.