“There will be an immediate positive impact on our foreign inflows, as the Chinese entity brings in an immediate advance payment of 30%. The balance will be received within 6 months,” he added.

“Thereafter, the two new companies are likely to invest a further USD 500-600 million for infrastructure development over the project implementation period adding more FDI inflows to the country.”

The newly operational Port and surrounding industrial zone will attract new investors in bunkering and port-linked industries such as a refinery, cement plants, a dockyard etc. “All of this will create new opportunities for local entrepreneurs of the area and create new and better jobs.”

Minister pointed out that one of the biggest challenges the government has had to grapple was the heavy overhang of debt, due to unfeasible projects undertaken in the past and a buildup of unproductive assets and Hambantota Port is one such project.

Hambantota port was built with a loan of Rs 193 billion. To date, the Port of Hambantota has severely underperformed and recorded an accumulated loss of over Rs. 46.7 billion as at the end of 2016.