Sri Lanka is set to sell a majority stake in its ‘remote’ Hambantota port to a Chinese company after agreeing on a revised deal to pacify India’s concerns, reports the Financial Times.
With nearly all government revenue currently going to debt servicing, the port is being sold as part of Sri Lanka’s strategy to pay down some of its debt, estimated to be around $65bn (USD), including $8bn to China.
The port is financially unviable due to its remote location with little demand for large-scale freight traffic, although India has expressed concern that China’s long-term interest in the project is strategic rather than commercial.