Government increases ownership stake of Hambanatota port to 30.6%

COLOMBO (News 1st) - Minister of Ports and Shipping, Mahinda Samarasinghe says that the government was successful in raising its shareholding with regard to the operations at the Hambantota Port to 30%. The announcement was made at a media briefing in Colombo today. According to the initial agreement, the Hambantota Port was to be leased for 99 years with the Sri Lankan Government having 20% of the shares. The remaining 80% stake in the port was to be given to China Merchants Port Holdings. Minister of Ports and Shipping Mahinda Samarasinghe stated that following successful dialogues with the company they were able to raise the Government's stake in ownership to 30.6%, adding that this was done with cabinet approval. The Minister also said that they were also successful in reaching an agreement with China Merchants Port Holdings to bring in the remaining direct investment of 146 Million US Dollars within a month. Yesterday (June 20) the government received the third tranche of the proceeds from China Merchant Port Holdings Co. Ltd of US$ 584 million. Minister Samarasinghe further noted that would boost Sri Lanka's foreign reserves and allow the Central Bankto control the rupee without allowing it to depreciate. The Minister also denied media reports that there was a request to establish a Casino and use an island for entertainment purposes. While assuring that there were no discussions in this regard, the minister noted that the island in question would only be used for Marine Related Operations.