CM Port Invests Final USD 584 Mn in Sri Lanka’s Hambantota Port
- Business & Finance
China Merchants Port Holdings (CM Port) has invested the final tranche of USD 584.2 million in Sri Lanka’s Hambantota Port after acquiring an 85 percent stake in the port last year.
This makes the highest-ever foreign direct investment (FDI) received by Sri Lanka to date, according to Sri Lanka Ports Authority (SLPA).
The third tranche follows the first and the second tranches released in December 2017 and January 2018.
In July 2017, Sri Lanka Ports Authority (SLPA) and the Government of Sri Lanka entered into the concession agreement with CM Port for management, operation and development of Hambantota Port. Under the agreement, CM Port obliged to invest USD 1.12 billion in the port.
In December 2017, two Sri Lankan companies established under the concession agreement, Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS) officially took over the Hambantota Port, making the concluded concession agreement effective.
“CM Port is one of the most successful global companies in the ports sector, and their investment in the Port of Hambantota can be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka,” Parakrama Dissanayake, Chairman SLPA, commented.
The two companies established in Hambantota further plan to invest an additional USD 400-600 million in phase I and II of the Hambantota Port.