Press briefing of Cabinet Decision taken on 2017-12-05

Signing of the Shareholder Agreement for the commencement of the operational activities of the Port of Hambantota

- In order to develop the Port of Hambantota by expanding its operations under the Public-Private Partnership, a Concession Agreement was signed on 29th July 2017 among the Sri Lanka Ports Authority (SLPA), the Government of Sri Lanka, China Merchants Port Holdings Company Limited (CM Port), Hambantota International Port Group (Private) Limited (HIPG) and Hambantota International Port Services (Private) Limited (HIPS). Accordingly, International Port Group (Private) Limited (HIPG) and Hambantota International Port Services (Private) Limited (HIPS), the two unique services companies established for the development of the Port of Hambantota, have planned to commence its operational activities on 09th December 2017 on the terms agreed upon in the Agreement.

85% of the Share Capital of the HIPG Company will be possessed by the CM Port Company or its affiliation and 15% of the same will be vested with the Sri Lanka Ports Authority. Similarly, 58% of the Share Capital of the HIPS Company will be possessed by the HIPG Company and the rest of 42% will be vested with the Sri Lanka Ports Authority. As such, the proposal made by Hon. Mahinda Samarasinghe, the Minister of Ports and Shipping, to sign the Shareholder Agreement prepared as a Supplementary Agreement to the Original Agreement among the relevant parties, was approved by the Cabinet.