The Sri Lankan government said Wednesday that it has received the third tranche of the proceeds from China Merchant Port Holdings Co. Ltd on the account of handing over of operations of Hambantota Port.
China Merchant Port Holdings has made a payment of US$ 584 million (Rs. 93 billion) to the Sri Lanka Ports Authority (SLPA) as the third tranche of its investment in the Public-Private Partnership on Hambantota port development, the SLPA said.
It is considered as the highest foreign direct investment Sri Lanka received in the history.
The Hong Kong-based company’s representative in Sri Lanka handed over the check for approximately US$ 584.2 million to the Sri Lanka Port Authority Chairman Dr Parakrama Dissanayake Wednesday. The first installment of US$ 292.1 million of the payment subsequent to the agreement signed between Sri Lanka Ports Authority and the China Merchant Port Holdings Co. Ltd., was credited to the US Dollar account of Government of Sri Lanka maintained at the Central Bank in December 2017 and the second payment of US$ 97 million was made in January this year.
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.
Following the signing of the agreement, the port operations was handed over to Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS).
Under the agreement, CMPort agreed to invest an amount of up to US$ 1.12 billion into Hambantota Port and Hambantota port and marine-related activities.