Sri Lanka has formally handed over the running of its primary southern port, Hambantota, to China Merchants Port Holdings on a 99-year lease. Hambantota is expected to play a significant role in the Beijing government's "One Belt One Road" initiative, being situated near the main shipping route from Asia to Europe. The port will be used by Chinese companies for container and bulk cargo transport, as well as passenger services. China is investing heavily in overseas ports to increase its maritime power and open up new shipping routes.
Sri Lanka has formally handed over the running of its primary southern port, Hambantota, to China Merchants Port Holdings on a 99-year lease. Hambantota is expected to play a significant role in the Beijing government's "One Belt One Road" initiative, being situated near the main shipping route from Asia to Europe. The US, Indian and Japanese governments have voiced concerns that China may use the port as a naval base. China is investing heavily in overseas ports to increase its maritime power and open up new shipping routes.