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Chinese Ambassador, Sri Lankan officials allay fears about Hambantota Port militarisation
View(s):The docking of warships is not equal to the militarisation of a port, and Sri Lankan leaders, including the President, Prime Minister and tri-force commanders, recently stated that reports of “so-called militarisation of Hambantota port… are not in accord with the facts,” China’s top diplomat in Colombo said this week.
“Certain people speculate or spread rumours about Chinese militarisation in Hambantota port because they don’t know much about the progress of Hambantota port, and they don’t understand the joint venture between China and Sri Lanka,” Ambassador Cheng Xueyuan said at a media symposium organised by the Chinese Embassy.
The concession agreement governing Chinese management of the Hambantota port places all affairs related to sovereignty and security in the hands of the Sri Lanka Government. The joint venture gives a 70 percent stake to the Chinese side while the Sri Lankan side holds 30 percent. The project company is not a fully Chinese concern; neither is there exclusive decision-making from the Chinese side.
At present, Sri Lanka and China are in extensive consultations over the construction of the proposed Hambantota industrial park. “According to plans, the Hambantota District will in future have a high-end logistics industry, high-end service industry and a biotechnology industry, becoming a powerful economic engine for Sri Lanka’s national development,” Ambassador Cheng said.
“Warships docking is not equal to the so-called militarisation of the Hambantota port. Recently, Sri Lankan Government leaders including President Sirisena, Prime Minister Wickremesinghe and commanders of the three forces all stated that the relevant reports are not in accord with the facts,” he asserted, attributing it to speculation.
The ambassador also pointed out that China’s “substantial financial support” towards Sri Lanka’s national construction projects was tendered in accordance with the country’s development needs. The commercial or loan agreements are “in line with the principle of extensive consultation, joint contribution and shared benefits,” and have been signed “on the basis of equity, reciprocity and mutual respect.”
Sri Lanka’s development needs as well as its Government’s capacity for repayment were taken into consideration. In recent months, international media have speculated that China has strategically ensnared Sri Lanka in a debt trap and that it will eventually use the Hambantota port for military purposes.
There are now many inquiries for development projects by State-owned enterprises and the Chinese private sector, Development Strategies Minister Malik Samarawickrama said at the event. Recently, the Board of Investment granted approval for a Chinese company to set up a US$700mn, 400-megawatt liquefied natural gas (LNG) power plant in Hambantota. Applications have been received for projects such as a cement plant and rubber-based industries. “I believe all agreements will be signed within the next two to three months,” he said, adding that it is hoped the China-Sri Lanka Free Trade Agreement will be concluded within one year.
The Hambantota International Port Group (HIPG) employs more than 600 people with 80 percent drawn from the Hambantota District, Chief Operating Officer of the company Tissa Wickramasinghe said. Since taking over the port on December 8, 2017, the company has focused only on the roll-on/roll-off business. “We have done in four months what the previous management did in one year,” he said. “And we did it by handling 132 ships against 202 ships handled for the whole of last year.”
The local hires have gone through a rigorous training. Priority is given to transferring port operational knowledge so they can work not only in Hambantota, but also overseas. “We believe Hambantota has a huge amount of scope,” Mr Wickramasinghe said. It is located in the centre of the world’s third largest water body and the world’s most resourceful ocean. It is also parked in between the two global leaders in oil bunkering, Singapore and Fujeirah.
“Between these two locations there is no other place that can provide the oil facilities or storage or bunkering facilities required by the global shipping lines that go past Hambantota,” he pointed out. “That’s the kind of business we are looking at but we are progressing step-by-step.”