Lanka Scales Back Hambantota Port Deal With China After Protests

India raised concerns over the Chinese presence in the Hambantota port as it perceives it a threat to security.

Hambantota port’s security will be managed by the Sri Lankans, post sale.

(Photo: Wikemedia Commons)

Sri Lanka's cabinet on Tuesday approved the sale 70 percent stake in the strategically located Hambantota port to a Chinese firm, tweaking the deal after the initial agreement sparked protests.

Earlier, the government had planned to offer the firm an 80 percent stake, said reports.

Parliament will debate the $1.12 billion-deal on Friday and formally enter it over the weekend, Ports Minister Mahinda Samarasinghe said.

State-owned China Merchants Port Holdings will have a majority stake in the port, he said.

The Chinese will manage port operations and Sri Lanka will handle port security, the minister said, indicating that it should allay fears that the port could be misused by the Chinese.

Security of the port will not be given to anyone else. It will be handled 100 per cent by Sri Lanka.

Mahinda Samarasinghe, Ports Minister

His comments are being seen as an attempt to allay Indian concerns over the Chinese presence in the Hambantota port as India perceives the sale as a danger to its national security.

The Maithripala Sirisena government had earlier faced public protests over handing over 15,000 acres of land for a Chinese industrial park in Hambantota. There were violent protests in the area as the local people refused to part with their land.

In 2014, New Delhi had protested to Colombo when a Chinese submarine called at the Colombo Port where Sri Lanka is currently developing a financial centre on the Chinese assisted port city project.

Samarasinghe said no favours would be granted to China.

We will not provide special treatment to any country. We want to maintain good relations with all and we don’t want to antagonise anyone.

Mahinda Samarasinghe, Ports Minister

The announcement came as petroleum workers stopped work at midnight on Monday, opposing the deal at Hambantota and the proposed lease of oil storage tanks in the eastern district of Trincomalee to India.

Long queues were seen at fuel stations with fuel distribution coming to a halt.

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