Sri Lanka hands over strategic port to China as part of Belt and Road Initiative

The Sri Lankan government has formally handed over the southern port of Hambantota to China on a 99-year lease.

The $1.5 billion port was opened seven years ago and is incurring losses due to lack of commercial activity.

Under the $1.12 billion deal, signed in July, China Merchants Port Holdings will hold a 70 percent stake in a joint venture with the state-run Sri Lanka Ports Authority.

The initial plan to give the Chinese firm an 80 percent stake has sparked protests from trade unions and opposition groups, forcing the sides to redraw the deal.

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