Atleast a decade required to generate profits from Hambantota Port : PM

Prime Minister Ranil Wickremesinghe today (Oct 30) said in order for the Hambantota Port to be transformed into a profitable venture, it would take at least a decade.

The USD 1.12-billion worth port is being run as a joint venture under a 99-year long agreement between China Merchants Port and the Sri Lanka Ports Authority, to pay off loans obtained to construct the facility.

Accordingly, Wickremesinghe added that both institutions involved in the joint venture expect that it would require at least a decade to transform the port into a profitable project.

"We have covered most of the expenses on the Hambantota Port," he said responding to journalists at Temple Trees following a presentation on the government's development projects.

“The problem is that while we’ve spent over a million dollars, China Merchant’s actual valuation is around USD 200 million less."

Responding to a query on the Mattala International Airport, the Prime Minister said that Sri Lankan authorities are holding talks with Indian companies to run it as a joint venture.

He said that the USD 480 million Millennium Challenge Corporation (MCC) grant agreement between the US and Sri Lanka will be signed "before the (presidential) election".

The Prime Minister eyed an economic growth of 7.5 percent, which he said, would assist Sri Lanka to achieve its target over the next five years.

"We are now an upper middle-income country. We have to go into a full upper economy which means more training, more jobs, and modernizing agriculture," he noted.

On the same lines, he said he would remain as Prime Minister if his United National Party (UNP)-backed New Democratic Front presidential candidate Sajith Premadasa comes into power.

Meanwhile, the Prime Minister said that upgrading of the Batticaloa Airport to accommodate international flights will begin in another two weeks.

"We have also asked for a feasibility study on extending the runway of the airport," he added.