Sri Lanka’s Hambantota port looks to become leading port in Indian Ocean
Posted on August 6th, 2018

CEO of the Hambantota International Port Services (HIPS) Ravindra Jayawickreme said the location of the Hambantota port had always been extremely advantageous as it was located just a little less than half a nautical mile from the sea lanes.

Sri Lanka’s Hambantota port looks to become leading port in Indian Ocean

But what was necessary to push this into the limelight, was the right partnerships and this is what China Merchants Port Holdings brought to the table,” Jayawickreme said.

China Merchants Port Holdings (CM Port) entered into partnership with the Sri Lanka Ports Authority in July last year to develop and manage the port.

Jayawickreme added that the Hambantota port was being developed into a multipurpose port, which will provide a variety of services such as handling containers, break bulk, roll-on/roll-off, passenger, oil, bulk terminal, gas and project cargo.

The port is slated to become one of a kind, as it will be the only port in the country designed to handle the full gamut of services in the maritime and logistics area, he explained.

3 Responses to “Sri Lanka’s Hambantota port looks to become leading port in Indian Ocean”

  1. Dilrook Says:

    This can only happen under Chinese ownership of the Hambantota Port. Chinese ships (China, Hong Kong, Singapore, Taiwan, Macau) will not patronize Hambantota Port in sizable numbers if the Port remained in Sri Lankan ownership. Sadly, this is a fact of life doing business with China. They do not let another player profit wihtout taking a lion’s share of the profit. Others must always play the part of the junior partner. It is a good move to long term lease it to China. Sri Lanka still retains 40% and that is a 40% share of profit without having to pay loans and interest. China is also far better than SLPA in efficiently managing the port. If the Port remained in our ownership, India, USA and others will disrupt it. Now that it is essentially with China, no nation can mess with it.

    A future patriotic government must hand over Trincomalee port, etc. to China to build a military base. This is the future of Asia we must accept or suffer its consequences. Middle Path foreign policy failed. When Sri Lanka reached the highest pinnacle of Middle Path foreign policy in 1976, another Non Aligned nation supported Tamil separatism. No one came to our rescue. The Non Aligned Movement is dead which is no surprise.

    Mattala airport must also be sold to China. Sri Lanka needs a powerful godfather to counter its enemies by aligning mutual interests.

  2. aloy Says:

    The port should not be given for a period more than 50 or 60 years, that is for two generations. Also there should be a cap on the extent of land given for industries, say a maximum of 5000 acres. For every Chinese there should be at least five Sri Lankans employed ( like in Malaysia) and also there should be strict conditions for technology transfer in the field of electronics and robotics. If not agreeable, we should pay back the loans and ask them to leave come what may. The CB governor says he has foreign reserves of $10 billions now (which by the way is a job done well). For all this to happen we need to have a leader who has a vision and commitment.

  3. Dilrook Says:

    I’m appauled by the lack of economics knowledge of Bandula. He laments the reduction of our forex reserves in July as if he doesn’t know we have to repay loans. It will further reduce by December for the same reason. Still we have a far better forex situation than January 2015.

    He also complains about ‘Panda Bonds’. A Chinese bank issuing bonds in China to raise money for Sri Lanka is fantastic. It is a far better option than our Development Bonds and Sovereign Bonds we raised in western capitals in the past that carried a ridiculously high interest rate and we accepted three to four times of the original loan (they were over subscribed). It is a good idea for Sri Lanka to default on these bonds. They are a worse fraud than the Central Bank bond fraud because they are in USD. I will not be surprised if substantial bond holders are wellknown Sri Lankans. They have borrowed this money from US banks at 2% interest rate and earning interest at 6.75%. Default on those bonds and let them go bankrupt.

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