Sri Lanka Wants To Undo 99 Year Lease Deal With China

By Victor Omondi

Sri Lanka’s new government seems serious about renegotiating the infamous 99-year deal the previous government had with a Chinese firm. Citing National interest, the government led by President Gotabaya Rajapaksa, seems bent over backward trying to achieve their election manifesto promise of undoing the deal.

The government was barely two weeks into the office when they started rolling the wheel on revisiting the deal that was signed by former Prime Minister Ranil Wickremesinghe under Maithripala Sirisena’s presidency.

The deal with China Merchants Port Holdings Co. was a lease of 99 years in exchange for $1.1 billion, which was meant to pay off China, in part, money used in building the port.

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Ajith Nivard Cabraal, a former central bank governor and an economic advisor to Prime minister Mahinda Rajapaksa says that they would like the Chinese firm to give the port back. “The ideal situation would be to go back to the status quo. We pay back the loan in due course in the way that we had originally agreed without any disturbance at all,” said Cabraal in an interview in his Colombo home.

The deal to have the Chinese firm hold an 80% stake of the debt-laden Hambantota port for 99 years, has been met by widespread protests from residents. A situation that has led the ruling party to seek the revision and back scaling of the deal.

It was the promise to revisit such contracts that made the bulk of the campaign manifesto of President Gotabaya. A win, or at least an effort, in renegotiating this deal will showcase the new government’s dedication to delivering their manifestos.

“China-Sri Lanka cooperation, including the Hambantota port project, is built based on equality and consultation. China looks forward to working with Sri Lanka to make Hambantota a new shipping hub in the Indian Ocean and developing the local economy,” said China’s Foreign Ministry spokesperson.

Source: Sri Lanka Wants To Undo 99 Year Lease Deal With China