Hambantota Port: Ownership Structure, Shareholding and Payment to the Government of Sri Lanka
Posted on July 15th, 2026

Dr Sarath Obeysekera

News item

Daily FT

https://www.ft.lk

MSC in talks to acquire stake in Hambantota Port

6 days ago — (MSC) is in discussions to acquire a significant stake in Hambantota International Port as part of a broader strategy to expand its port …

    How can MSC invest in Hambantota when chinese company owns 85% ?

Sarath Obeysekera 

The Hambantota Port is not owned outright by China. It is operated under a 99-year concession (lease) through joint venture companies between the Sri Lanka Ports Authority (SLPA) and China’s state-owned China Merchants Port Holdings.  

Ownership structure

The port is managed through two companies:

  1. Hambantota International Port Group (HIPG) – responsible for port development and commercial operations.
  2. Hambantota International Port Services (HIPS) – responsible for marine services and common user facilities.

It is important to note that security, immigration, customs, and naval control remain with the Government of Sri Lanka. The agreement relates to commercial operation of the port, not sovereignty.  

How much did China pay?

Under the 2017 agreement:

Did the Government receive the money?

Yes. The US$973.7 million was received by the Sri Lanka Ports Authority/Government as part of the concession transaction. A significant portion of these funds was used by the Sri Lankan Government to strengthen its foreign exchange reserves and meet debt obligations, rather than to repay the specific Hambantota Port loans directly.  

Summary

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