Sri Lanka Clears Major Hurdle For China’s Silk Route Project

COLOMBO (IDN) - The signing of a deal between the Sri Lankan government and a Chinese company, basically transferring the ownership on a 99-year lease of the strategically located Chinese-built Hambantota Port and 5,000 acres of land surrounding it for an industrial park in southern Sri Lanka has cleared a major hurdle for China’s ambitious Maritime Silk Route project while at the same time raising concerns about security and sovereignty issues.

The government-owned Sri Lankan Port Authority has signed a 1.1 billion dollar deal agreeing to sell a 70 percent stake in the Hambantota port to China’s state-run conglomerate China Merchants Port Holdings. The Cabinet approved the deal on July 25 and the government signed it at a ceremony opened to the media on July 29.