Hambantota Port yet to yield profits

Hambantota International Port, which is run by a joint venture between China Merchants Port Holdings (CM Port) and Sri Lanka Ports Authority (SLPA) has not paid dividend payment to the Sri Lankan government as it has not made any profits up to now, a statement issued by Ports and Shipping Ministry said according to Sri Lankan Media reports.

Sri Lankan Ports and Shipping Minister NimalSiripala De Silva’s attention has been drawn to initiate more revenue generating programs at the port and a special discussion was held in this regard at the Ports Ministry last week. During the discussions it was pointed that the several issues with the Central Bank and the Board of Investment have been resolved to help the implementation of the new development program of the Port.

Until now, the main operational activities of Hambantota Port has been confined to re-export of imported vehicles. The Minister also stated that an active program should be prepared together with SLPA for Hambantota port to attract more and more ships sailing in the Indian Ocean to Hambantota and Colombo ports.

Sri Lankan Minister de Silva pledged to intervene to resolves these issues promptly. TheMinister instructed the Authority officials to submit the proposals and future programs to make Hambantota a profitable port to the Ports Ministry. He would take steps to obtain the approval of Cabinet of Ministers for the proposals if necessary,”

The State-run SLPA has 15 percent stake in Hambantota Port while the Chinese company held rest of the majority stakes (85 Per cent) the operation of the port has been handed over to the Chinese company on a 99 years.