Sri Lanka paid $51mn per year in loan repayments for the first phase of the Hambantota Port, between 2007 and 2012, Sri Lanka Ports Authority said according to LBO.
The first phase of the project cost over $500mn of which 90 percent was granted by the Chinese EXIM Bank.
“Proper feasibility studies were not carried out regarding the viability of re-paying the large loan re-productively,” the Ports Authority said.
“This resulted to re-pay US$51mn or more than Rs07bn in Sri Lankan Currency per year,”
“At present, 60 percent of the value of the port is required to re-pay the large amount of the total debt borrowed by the Port,”
“It had been a burden to the Port and it was not a profit earned when compared to the investment incurred.” the Ports Authority further said.
China’s loans to Sri Lanka reach nearly $4 billion (04 May 2014)
9th round of consultations with China 'highly successful' says Sri Lanka (03 May 2014)
Sri Lanka owes over $15 billion in foreign loans (20 Jul 2012)
Who benefits from Chinese loans to Sri Lanka? (21 Nov 2010)
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