Sri Lanka port deal with China deadlocked over island dispute: report

ECONOMYNEXT – A Chinese state firm is holding back a part payment of 585 million US dollars for Hambantota Port over a unresolved issues including a dispute involving an artificial island, a media report said.

Sri Lanka’s The Sunday Times newspaper said one of the issues revolves around an artificial island built during the construction of the port.

The report quoted Sri Lanka Ports Authority Chairman Parakrama Dissanayake as saying that the island could be used for port and marine related activities and not for entertainment under a gazette notice.

Sri Lanka sold 80 percent stake in Hambantota port to CM Ports, in a controversial transaction through a corporate structure involving a 99-year lease for 1.12 billion US dollars.

CM Ports made a 292 million dollar payment in December 2017 soon after the agreement was signed, pending the handing over activities. (Colombo/June10/2018)

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