CURRENT AFFAIRS

Detailed explanation-1: -Struggling to pay back over eight billion-dollar Chinese loans and investments, the previous Sri Lankan government has handed over the majority share of the Hambantota port to a Chinese state-owned company on a 99-year lease to raise USD 1.2 billion.

Detailed explanation-2: -After victory, Sri Lankan Prime Minister Ranil Wickremesinghe announced the “Regaining Sri Lanka” economic development programme in 2002, which identified the Hambantota port for development.

Detailed explanation-3: -COLOMBO, Sri Lanka-It all began 20 years ago, when China loaned Sri Lanka more than $1 billion to build a fancy new port-what would become its second-largest-on its southern coast. The Hambantota port, with its strategic location near busy Indian Ocean shipping routes, was touted as good for Sri Lankan commerce.

Detailed explanation-4: -Interestingly, there was no change in Sri Lanka’s debt obligations for this project following the acquisition of stakes by Chinese entities in the Hambantota Port. Payments for these stakes were sent to the Treasury which possibly used it for other purposes perhaps.