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| Sri Lanka signs deal on Hambantota port with China | |
| (about 1 hour later) | |
| Sri Lanka has signed a $1.1bn (£837m) deal with China for the control and development of the southern deep-sea port of Hambantota. | |
| The deal had been delayed by several months over concerns that the port could be used by the Chinese military. | |
| The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe. | The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe. |
| Sri Lanka's government says money from the deal will help repay foreign loans. | Sri Lanka's government says money from the deal will help repay foreign loans. |
| Under the proposal, a state-run Chinese company will have a 99-year lease on the port and about 15,000 acres nearby for an industrial zone. | Under the proposal, a state-run Chinese company will have a 99-year lease on the port and about 15,000 acres nearby for an industrial zone. |
| The plan envisages the eviction of thousands of villagers but the government says they will be given new land. | The plan envisages the eviction of thousands of villagers but the government says they will be given new land. |
| China has pumped millions of dollars into Sri Lanka's infrastructure since the end of a 26-year civil war in 2009. | China has pumped millions of dollars into Sri Lanka's infrastructure since the end of a 26-year civil war in 2009. |
| Hambantota port, overlooking the Indian Ocean, is expected to play a key role in China's Belt and Road initiative, otherwise known as the new Silk Road, which will link ports and roads between China and Europe. | Hambantota port, overlooking the Indian Ocean, is expected to play a key role in China's Belt and Road initiative, otherwise known as the new Silk Road, which will link ports and roads between China and Europe. |
| The initiative is being keenly watched by regional trade rivals including India and Japan. | The initiative is being keenly watched by regional trade rivals including India and Japan. |
| Opponents of the project said they feared the area being turned into a Chinese colony. There were also concerns that the Chinese navy could use the port as a base. | Opponents of the project said they feared the area being turned into a Chinese colony. There were also concerns that the Chinese navy could use the port as a base. |
| In a move to ease those concerns, the Sri Lankan government announced a revised deal to cut the Chinese firm's stake to 70%. Officials also made assurances that the port would not be used by the Chinese military. | In a move to ease those concerns, the Sri Lankan government announced a revised deal to cut the Chinese firm's stake to 70%. Officials also made assurances that the port would not be used by the Chinese military. |
| "We are giving the country a better deal without any implications on security," Prime Minister Ranil Wickremesinghe told reporters on Friday. | "We are giving the country a better deal without any implications on security," Prime Minister Ranil Wickremesinghe told reporters on Friday. |
| He said the deal would help Sri Lanka manage its foreign debt. | He said the deal would help Sri Lanka manage its foreign debt. |
| The BBC's Azzam Ameen in Colombo says that the signing took place at the Sri Lanka Port Authority premises in the capital. The deal was inked at 10:43 (05:13 GMT) - considered an auspicious time. |