Quick Take: China Makes Final Payment for 99-Year Lease on Sri Lankan Port
The state-owned China Merchant Port Holdings Co. Ltd. (CMPH) paid a third and final $584 million tranche to the Sri Lanka Ports Authority as part of a deal that gives China access to the strategic Hambantota deepwater port.
The payment concludes a $1.12 billion deal that was formalized in December under which CMPH took a 70% stake in the port on a 99-year lease. The port is key to the maritime section of China’s Belt and Road Initiative, which involves building a network of harbors across China’s southern sea routes in order to facilitate trade.
But the deal has been controversial in Sri Lanka due to the debt the government racked up during the port’s development, which is thought to have cost more than $1 billion. Official estimates put the country’s debt levels as high as $64.9 billion in 2016, equivalent to 75% of its gross domestic product, with around $8 billion of this debt thought to be owed to China.
Sri Lankan media earlier this month reported that China had delayed the final payment after the Sri Lankan government objected to Chinese plans to develop a man-made entertainment island near the project. It is unclear how the issue was addressed before the final payment.
Hong Kong-listed CMPH is a major state-owned investment holding company with businesses spanning port operations, container shipping, cold storage and logistics.
Contact reporter Ke Dawei (firstname.lastname@example.org)
Aug 07 16:15
Aug 07 15:42
Aug 07 04:24
Aug 06 19:23
Aug 06 19:01
Aug 06 17:30
Aug 06 16:01
Aug 06 14:18
Aug 05 18:04
Aug 05 17:20
Aug 05 17:03
Aug 05 16:47
Aug 05 15:15
Aug 05 13:25
Aug 04 17:56
- 1Exclusive: Ant Group Aims to Raise $30 Billion in Record-Shattering IPO
- 2Chinese Researchers Find Mutation That Could Make Covid-19 10 Times More Infectious
- 3TikTok Shifts Global Operations Base to Europe
- 4Central Bank Delays New Rules for $12.9 Trillion WMP Industry
- 5China Dodges Corporate Bond Default Bullet but Outlook Is Darkening
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas