Published: 12:09pm, 10 Dec, 2017 Updated: 2:55pm, 20 Jul, 2018
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 shipping corridor " initiative , being situated near the main shipping route from Asia to Europe . The US , Indian and Japanese governments have expressed concerns that China will use the port as a naval base . China is investing heavily in overseas investment to increase its maritime power and open up new shipping routes .