China undertakes construction of Hambantota Port

The construction of the Hambantota Bunkering system and Tank Farm Project has been undertaken by the Chinese government subsequent to a visit of Chinese Premier Wen Jiabao to Sri Lanka from April.

A sum of Rs. 1.5 billion (US $ 15m), would be invested by the Chinese Harbour Engineering Company (CHEC) for the re-constructing six fisheries harbours out of the 10 destroyed by the tsunami. This would be completed within a period of 18 months. The Chinese entrepreneurs would also get involved in the Puttalam Coal Power, the Colombo - Katunayake Expressway, Colombo - Katunayake Airport Rail link, the Phosphate Mining and NPK Compound Fertilizer Project and the Kotte Sewerage System Project.

Sri Lanka would benefit from the preferential export buyer's credit of US$ 300 million pledged to support co-operation between Sri Lankan and Chinese enterprises. China has also agreed to provide a grant of RMB 50 (Rs. 600) million for Economic and Technical Cooperation.

A Memorandum of Understanding on Cooperation in the field of Agriculture was also signed to introduce novel methods to the local sector.

In addition series of Agreements and MoUs relating to resource development, housing, telecommunications and education were also signed during the Chinese Premier's visit.