99-year lease of Hambantota port to China ‘a mistake’, says President

Business

Published Wed, 27th November 2019
by Admin

Newly elected President of Sri Lanka intends to renegotiate lease and produce better deal with China.

The 99-year lease of Hambantota port to China, a development signed during the previous government, is “a mistake”, according to the newly elected 7th Executive President of Sri Lanka.

Gotabaya Rajapaksa is the winner of the 2019 Presidential Election and was sworn in as the 7th Executive President of Sri Lanka on 18 November at Anuradhapura.

He was giving an interview to local publications BharatShakti.in and Strategic News International Journal during an earlier date when he said the arrangement will have to be renegotiated.

“And even though China is a good friend of ours and we need their assistance to develop, I’m not afraid to say that was a mistake. I will request them to renegotiate and come with a better (deal) to assist us,” explained Rajapaksa.

“Today the people are not happy on that deal, we can think of one year, two years, five years, we have to think of the future, what will happen? So giving a small land for investment is a different thing.

“To develop a hotel or a commercial property is not a problem, that’s not an issue. The strategically important, economically important harbour, giving that is not acceptable.

“That we should have control. We have to renegotiate. Giving a terminal for an operation is a different thing, giving some location to build a hotel is different, not the control over a very important place, it is not acceptable. So that is my position.”

Under the previous government, Sinopec Group in early November confirmed plans to invest in bunkering operations at Hambantota by incorporating a company in Sri Lanka named Sinopec Fuel Oil Lanka (Private) Ltd.; the firms has made an application for a bunkering license to carry out operation at the port in Q4 2019.

Meanwhile, an affiliate company to Singapore-based petroleum and coal trading company Sugih Energy International Pte Ltd has proposed the construction of a 420,000 barrels/day capacity petroleum refinery to transform Hambantota port into a bunkering location.

“And we want to work with China as well. Diplomatic relations and economic relations are everywhere. India is working closely with China. I know Indian investment goes to China, Chinese investment comes to India. Like that, we want investments and help but we will not do anything, we don’t want to get involved in military and geopolitical rivalry,” Rajapaksa adds.

“The other thing that I want to tell the world powers like India, Singapore, Japan, Australia, you know, the reality is they are scared of Chinese involvement, that’s a reality. But in our point of view it is commercial. We are a small country and we want foreign investment to improve our economy.

“So I invite India, Singapore, Japan and Australia to come and invest here. Don’t allow only China to invest. These governments must encourage their private companies to come and invest, come and help us. Without leaving it to one country and then grumbling.”

Photo credit: Presidential Secretariat of Sri Lanka
Published: 27 November, 2019

99-year lease of Hambantota port to China ‘a mistake’, says President

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