China will finance the expansion of Hambantota Port in the island’s south with two loans of 600 million US dollars and one billion yuan, cabinet spokesman Keheliya Rambukwelle said.
The dollar denominated loan will come from the Exim Bank of China and the yuan loan will come from the government of China.
“The second phase of the port will provide a strong supplementary port to Colombo Port and support Sri Lanka to consolidate its status as a transshipment hub in the South Asian region,” he said.
The first phase of the Hambantota port, also financed by China has been positioned as an industrial port with facilities to transship vehicles and also provide bunkering services.
Source: Sri Lanka Ports Authority, August 24, 2012