Subscribe to our free daily newsletters
. Military Space News .




Subscribe to our free daily newsletters



SUPERPOWERS
Sri Lanka completes controversial $1 billion port deal with China
By Amal JAYASINGHE
Colombo (AFP) July 29, 2017


Sri Lanka on Saturday sealed a billion-dollar deal to let a Chinese state firm take over a loss-making port in a move that worries many, including its giant neighbour India.

The long-delayed $1.1 billion sale of a 70 percent stake in Hambantota port, which straddles the world's busiest east-west shipping route, was confirmed by Sri Lanka's Ports Minister Mahinda Samarasinghe.

The government used tough laws against industrial action to stop workers going on strike this week to oppose the sale to China Merchants Port Holdings.

India is nervous about China's infrastructure moves into its traditional sphere of influence.

"We have addressed geo-political concerns," the minister said at a signing ceremony in Colombo. "China has accepted that everything in this agreement will operate under Sri Lankan law."

Negotiations over the deal were held up for months amid opposition from trade unions and political parties.

The minister said this week that several countries had raised fears about the sale. India and the United States are known to be concerned that China getting a foothold at the deep-sea port could give it a military naval advantage in the Indian Ocean.

Samarasinghe said that Hambantota, 240 kilometres (150 miles) south of Colombo, will not be a military base for any country.

China Merchants built and operates Sri Lanka's only major deep-sea terminal in Colombo, which can accommodate the world's largest container carriers.

- Strategic partner -

Executive vice president Hu Jianhua said the company wanted to make Hambantota the gateway to expanding economies in South Asia and Africa where it has similar port operations.

"(The) business of Hambantota port will be cross border, across the Indian ocean, stretching to the Far East, to Europe and to the globe," Hu said.

"Sri Lanka will be well positioned to play a strategic role in the one-belt-one-road initiative of the government of the People's Republic of China," Hu said.

Sri Lanka has signed up to President Xi Jinping's signature foreign policy initiative, which aims to strengthen China's land and sea trade routes.

India has snubbed Xi's plan and skipped a May summit in Beijing that was attended by world leaders.

Samarasinghe said Hambantota will be purely a commercial port, but any routine port calls by foreign navies will be regulated by Sri Lanka as in the case with the Colombo port.

Two Chinese submarines called at Colombo in 2014 during the final year of former president Mahinda Rajapakse's tenure, angering New Delhi.

The new government of President Maithripala Sirisena turned down a Chinese request in May for another submarine call at Colombo shortly after Indian Prime Minister Narendra Modi visited the island.

Sirisena came to power in January 2015 promising to loosen ties with China after a decade of hefty funding by Beijing under his predecessor.

He suspended all big ticket Chinese funded projects amid allegations of corruption. These have resumed after modifications to the contracts with the previous government.

Apart from the $1.12 billion sale price, the Chinese firm will invest another $600 million to develop Hambantota, Samarasinghe said.

The port has racked up losses of $300 million in the last six years, according to official figures. In addition, the government pays more than $60 million annually to service the port's debt.

SUPERPOWERS
Sri Lanka finalises $1.12 bn port deal with China
Colombo (AFP) July 25, 2017
Sri Lanka's government Tuesday approved the sale to China of a majority stake in a loss-making but strategically-sited deep sea port for more than a billion dollars, the ports minister said. The cabinet gave final approval to sell a 70 percent stake in Hambantota port for $1.12 billion to state-owned China Merchants Port Holdings, minister Mahinda Samarasinghe told reporters. The Chine ... read more

Related Links
Learn about the Superpowers of the 21st Century at SpaceWar.com
Learn about nuclear weapons doctrine and defense at SpaceWar.com


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

SUPERPOWERS
Arleigh Burke-class destroyer Ralph Johnson completes builders trials

Yemeni rebel missile shot down near Mecca: Arab coalition

Lockheed awarded $130.3 million contract for Patriot missile foreign sales

US deploys Patriots in Lithuania for NATO war games

SUPERPOWERS
Two countries order Rheinmetall air defense systems

Raytheon receives Standard Missile contract for U.S., foreign navies

Raytheon, Lockheed to upgrade Javelin missile system

Progress with Russia over air-defence system: Erdogan

SUPERPOWERS
AeroVironment supplying small UAS to Australia

Insitu receives contract for Afghan ScanEagle UAS services

Leonardo DRS, Moog receive counter-UAS weapons contract

Singapore offers Manila drones, urban warfare training

SUPERPOWERS
82nd Airborne tests in-flight communication system for paratroopers

North Dakota UAS Training Center Depends on IGC Satellite Connectivity

First UAVs, Now Ships - Connectivity for the next generation of remote naval operations

Northrop Grumman receives Australian satellite ground station contract

SUPERPOWERS
BAE, Gorizioni Group partner on BvS10 all-terrain vehicle

Raytheon receives $75 million Small Diameter Bomb II contract

BAE testing new monitoring system for military bridges

China military setting up technology research agency

SUPERPOWERS
Japan's scandal-hit defence chief resigns

GAO report details sting operation that defrauded DOD surplus program for police

White House to issue executive order on defense industry sourcing

Pentagon trims Pakistan military aid over Haqqani inaction

SUPERPOWERS
China to 'step up' troop deployment against India; China buzzes US recon plane

China urges ASEAN to reject outside interference

Sweden plans large joint military exercise with NATO

China and India locked in high-stakes, high-altitude border row

SUPERPOWERS
Nanoparticles could spur better LEDs, invisibility cloaks

New material resembling a metal nanosponge could reduce computer energy consumption

How do you build a metal nanoparticle?

Nanostructures taste the rainbow




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement