CURRENT AFFAIRS

Detailed explanation-1: -The Hambantota port, with its strategic location near busy Indian Ocean shipping routes, was touted as good for Sri Lankan commerce. But it wasn’t profitable, and the government defaulted on those Chinese loans. Then China foreclosed, taking over the port’s operations in 2017 on a 99-year lease.

Detailed explanation-2: -The Adani Group will become the first Indian port operator in Sri Lanka as construction of the Colombo Port’s Western Container Terminal (WCT) is set to start on Wednesday. The group will have the majority stake in the West Container International Terminal Joint Venture (JV) which is valued at $700 million.

Detailed explanation-3: -Under the 2017 agreement, Sri Lanka Ports Authority created Hambantota International Port Group (HIPG), which then became a joint venture after China Merchant Ports bought an 85 per cent stake in HIPG as part of the Chinese company’s US$1.12 billion investment into the port.

Detailed explanation-4: -Sri Lanka extended diplomatic recognition to the People’s Republic of China in January 1950, First Country in South Asia. In April 1952, the two countries entered into the historic Rubber-Rice Pact whereby Sri Lanka supplied rubber to China under a barter arrangement, receiving rice from China in return.