The final tranche of investment for the
Hambantota Port lease was released by China Merchant Port Holdings Limited
(CM Port) on June 20 overcoming the differences between China and the island
nation over control of certain islands near the Port. Hambantota situated at
the strategic southern tip of the island has come under the control of the
Chinese company according to reports in the Sri Lankan Meida..
The cheque for 584,194,800 USDollars was
handed over to the Chairman of Sri Lanka Ports Authority (SLPA) Parakrama
Dissanayake by the Chief Representative of China Merchant Group in Sri Lanka
Ray Ren in the presence of senior port officials and representatives of CM
Port. This is the single highest ever Foreign Direct Investment (FDI)
received by Sri Lanka to date.
With this payment CM Port fulfills the USD
976 million investment value 1 of the port concession and in terms of the
Concession Agreement, CM Port has agreed to deposit a further sum of
USD 146 million being investment value to be utilised for port and
marine related activities.
In view of urgent need for viable and
efficient operation of the Port of Hambantota, Lanka Ports Authority
(SLPA) and the Government of Sri Lanka entered into the Concession
Agreement with China Merchant Port Holdings Limited of Hong Kong in July last
year for management, operation and development of Hambantota Port on Public
Private Partnership model,
On 09th December last year two Sri Lankan
companies established under the concession agreement namely, Hambantota
International Port Group (HIPG) and Hambantota International Port Services Co.
(Pvt) Ltd. (HIPS) officially took over the Hambantota Port thereby making the
concluded concession agreement effective.
"CM Port is one of the most successful
global companies in the ports sector, and their investment in the Port of
Hambantota can be described as a credible vote of confidence in its potential
as well as in the economy of Sri Lanka," said Chairman SLPA Parakrama
The two companies established in Hambantota
plans further to invest an additional US$ 400 million to US$ 600 million on
phase I and II of the Hambantota Port. These investments will attract many
other foreign investors to the country, making Sri Lanka a pivotal maritime and
During the year 2017, Port of Colombo was
ranked as the 23rd largest Container Port and 13th best connected
Port in the world. SLPA also recorded a Net Profit of Rs 13.2 Billion in 2017,
as against a Net Profit of Rs 1 Billion achieved in 2016 .
With transshipment volumes in the Port of Colombo
during the first 5 months of 2018 as against 2017 increasing by 19.2 per
cent and Jaya Container Terminal managed by SLPA recording a transshipment
growth of 21 per cent during the aforesaid period, the conclusion of the
Concession Agreement of Hambantota Port would further enhance the profitability
of the Sri Lankan Port Authority.