Colombo, July 30 (TNS): Sri Lanka on Saturday inked a $1.1bn deal with China for the control and development of the southern deep-sea port in the island.
Amid tension between New Delhi and Beijing over a border standoff, the deal had been delayed by some months over concerns that the port could be used by the Chinese military.
The Chinese government has given guarantees that China will run the port only for commercial purpose as the port is main shipping route between Europe and Asia.
Colombo said money from the agreement will help repay external debts.
According to deal, Chinese company will have a 99-year lease of the port and 15,000 acres land nearby for an industrial zone.
Beijing injected millions of dollars into Sri Lanka’s infrastructure in island country since 2009.