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Revitalised Hambantota project will boost economy, says Minister Samarawickrama
View(s):The Hambantota project will bring in an FDI inflow of US$ 1.12 billion and there will be an immediate positive impact on our foreign inflows, as the Chinese entity brings in an immediate advance payment of 30%. The balance will be received within six months, Minister of Development Strategies and International Trade Malik Samarawickrama said on Friday.
He added that two new companies are likely to invest a further US$500-600 m for infrastructure development over the project implementation period adding more FDI inflows to the country. The minister made these comments during the parliamentary debate on the regulations made to give several tax concessions to China Merchant Group that will operate and manage the Hambantota port.
The minister said the newly operational port and surrounding industrial zone will attract new investors – in bunkering and port-linked industries such as a refinery, cement plants, a dockyard etc. “All of this will create new opportunities for local entrepreneurs of the area and create new and better jobs.”
He said that the government has a focused economic development drive that aims to transform this country by generating new investment, new economic opportunities for more people, and creating more and better jobs.
“The Hambantota port is one such project. Hambantota port was built with a loan of Rs.193 billion. To date, the Port of Hambantota has severely underperformed and recorded an accumulated loss of over 46.7 billion rupees as at the end of 2016. It was built with little attention to its commercial viability and little consideration for the burden it would place on our people if it isn’t operationalised properly, he added.
“No Sri Lankan with a right conscience could watch this go on. We had to look for ways to lift this burden off the people, while not losing this public asset. And this is what we are doing today. All of my fellow members of this House who vote in favour of this will be contributing towards an important national decision today,” he said.