On Saturday 29th July 2017, Sri-Lanka introduced itself in the race of economical development by signing a deal on southern Hambantota port with China.

According to the official sources, Sri Lankan government has signed an agreement with China of $1.1bn (£837m) deal for the control and development of the southern deep-sea port of Hambantota.

It is stated that the deal had been delayed by several months over concerns that the port could be used by the Chinese military.

The Minister of trade and development said, “Government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe.

“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.”

China had also supported Sri-Lanka millions of dollars for the development of infrastructure since the end of a 26-year civil war in 2009.

The Indian Ocean would be 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.