Sri Lanka’s cabinet has cleared a revised agreement with China Merchants Port Holding for the development of Hambantota Port today.
According to Reuters, under the new deal the Sri Lankan government has sought to limit China’s role to running commercial operations at the port while it has oversight of broader security.
Sri Lanka’s cabinet spokesman Dayasiri Jayasekera said the deal has been approved by the cabinet and will be sent to parliament for further approval.
China Merchants Holdings signed a deal with Sri Lanka Ports Authority in 2014 to develop and operate Hambantota Port’s phase two project with a concession period of 35 years.
The project is part of a $1.4bn project led by Chinese investment to develop a port city in Colombo and was put on hold for reviewing after the new government in Sri Lanka took power in 2015.