Press briefing of Cabinet Decision taken on 2012-08-22

Loans from the Exim Bank of China to finance Hambantota Port Development Project ? Phase II

- Phase I of the above project was implemented with financial assistance from the Exim Bank of China. The main components completed under Phase I were, breakwater, approaching channel, harbour basin, stocking yard, roads and administration building. The Exim Bank of China has agreed to provide a loan of US $600 million and a Chinese Government Concessional Loan Renminbi Yuan 1 billion to finance Phase II of the project. The objective of Phase II of the project is to build a strong supplementary Port to Colombo Port as an International Hub and support Sri Lanka to consolidate the status as a container transshipment hub in the Southern Asian Region. The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to enter into the relevant loan agreements, was approved by the Cabinet.