Dec 26, Colombo: Sri Lanka has received the first tranche of the proceeds from China Merchant Port Holdings Co. Ltd on the account of handing over of operations of Hambantota Port.
The Central Bank of Sri Lanka in a release said today that subsequent to the agreement signed between Sri Lanka Ports Authority and the China Merchant Port Holdings Co. Ltd., US $ 292.1 million has been credited to the US Dollar account of Government of Sri Lanka maintained at the Central Bank.
The share ownership agreement to expand and develop the Hambantota Port under a public-private partnership for a 99-year period was formally signed between the Sri Lanka Ports Authority (SLPA) and China Merchant Port Holdings (CMPort) on 9th December. The US$ 300 million initial payment under the lease agreement was officially handed over to Sri Lanka at the signing.
Under the 99-year lease agreement, CMPort agreed to invest an amount of up to US$ 1.12 billion into Hambantota Port and Hambantota port and marine-related activities.