Sri Lanka on Saturday sealed a billion-dollar deal to let a Chinese state firm take over a loss-making port in a move that worries many, including its giant neighbour India.
The long-delayed $1.1bn sale of a 70% stake in Hambantota port, which straddles the world’s busiest east-west shipping route, was confirmed by Sri Lanka’s Ports Minister Mahinda Samarasinghe.
The minister said this week that several countries had raised fears about the sale. India and the United States are known to be concerned that China getting a foothold at the deep-sea port could give it a military naval advantage in the Indian Ocean.
Samarasinghe said that Hambantota, 240km south of Colombo, will not be a military base for any country.Strategic partnerExecutive vice president Hu Jianhua said the company wanted to make Hambantota the gateway to expanding economies in South Asia and Africa where it has similar port operations.
“(The) business of Hambantota port will be cross border, across the Indian ocean, stretching to the Far East, to Europe and to the globe,” Hu said.
Sri Lanka has signed up to President Xi Jinping’s signature foreign policy initiative, which aims to strengthen China’s land and sea trade routes.
India has snubbed Xi’s plan and skipped a May summit in Beijing that was attended by world leaders.
The new government of President Maithripala Sirisena turned down a Chinese request in May for another submarine call at Colombo shortly after Indian Prime Minister Narendra Modi visited the island.
Thursday, June 04, 2026
