Sri Lanka negotiates new Hambantota port agreement with China

Sri Lanka renegotiate the agreement signed with China on the port of Hambantota 1,400 million, Minister of Strategic Development and International Trade, Malik Samarawickrama said on Thursday. Given the heated public controversy over the granting of 80 percent equity in the port to the China Merchants Ports owned by the State Holding and recently taken by President Maithripala Sirisena to submit the existing agreement to review, The Cabinet of Sri Lanka decided to re-negotiate the case. The firm appointed a committee to discuss the matter with China Holding Holdings and reach an agreement at the end of January, Samarawickrama said. So far, only signed a framework agreement of eight or nine new agreements will be negotiated, he said. Samarawickrama denied that he had said that the entire agreement will be completed and signed on January 7, a day before the second anniversary of Sirisena's presidency. The new cabinet committee will include Samarawickrama, Ravi Karunanayake and Sagala Ratnayake members of the Unified National Party (UNP); And Sri Lanka Freedom Party (SLFP) members Sriplala Nimal Silva, Sarath Amunugama, Arjuna Ranatunga and. The two sides represent Ranil Wickremesinghe Prime Minister and President Sirisena respectively. When asked if there is a likelihood that the 80 percent stake may be reduced, Samarwickreme was evasive, but he suggested the possibility. However, he added that under no circumstances will the participation of Sri Lanka be less than 20 percent. But Premier Wickremesinghe said Wednesday that there is no problem in granting an 80 percent stake in the Chinese business because, through it, a huge debt will become capital. The new committee is more representative than the panel thought and signed the controversial framework agreement that gave the controversial 80 percent stake to the Chinese company and 99-year lease more than 15,000 acres of land to build an economic hinterland for the Harbor. The framework agreement was not signed by Postmaster Arjuna Ranatunga but two others that had nothing to do with ports. Ranatunga does not disdain to give 80 percent shares in Chinese society, but does not want the port authority of Sri Lanka to lose control of port security. Prime Minister Wickremesinghe believes that port security should be held by the joint venture to train with Sri Lanka Navy to assist it, as is the case with all major international ports operated by the private sector. It remains to be seen whether the members of the UNP and SLFP (ie, representatives of the Prime Minister and President respectively) will meet on the committee and negotiate with the Chinese as a team. There are strong arguments for and against giving 80 percent stake in Chinese society. The strongest for it is the conversion of a huge debt to equity when Sri Lanka is difficult for the money and has a balance of payments crisis in their hands. Few countries have come forward to offer him money. As one business publisher said, Sri Lanka can not afford to increase its stake in the current port by 20 percent. The agreement is also consistent with the government's policy to develop the country by winning foreign direct investment and non-binding loans, express service reports








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