COLOMBO: Sri Lanka on Saturday sealed a billion-dollar deal to let a Chinese state firm take over a loss-making port in a move that has been opposed by unions and worries the island’s neighbors.
The long-delayed $1.1 billion sale of a 70 percent stake in Hambantota port, which straddles the world’s busiest east-west shipping route, was confirmed by Sri Lanka’s Ports Minister Mahinda Samarasinghe.
The government used tough laws against industrial action to stop workers going on strike this week to oppose the sale to China Merchants Port Holdings. India is nervous about China’s infrastructure moves into its traditional sphere of influence.
“We have addressed geopolitical concerns,” the minister said at a signing ceremony in Colombo. “China has accepted that everything in this agreement will operate under Sri Lankan law.”
Negotiations over the deal were held up for months amid opposition from trade unions and political parties.
The minister said this week that several countries had raised fears about the sale. India and the US are known to be concerned that China getting a foothold at the deep-sea port could give it a military naval advantage in the Indian Ocean.
Samarasinghe said that Hambantota, 240 kilometers (150 miles) south of Colombo, will not be a military base for any country.
China Merchants operates Sri Lanka’s only major deep-sea terminal in Colombo, which can accommodate the world’s largest container carriers.
Executive vice president Hu Jianhua said the company wanted to make Hambantota the gateway to expanding economies in South Asia and Africa where it has similar port operations.
“Sri Lanka will be well positioned to play a strategic role in the ‘One Belt, One Road’ initiative of the government of the People’s Republic of China,” Hu said.
Sri Lanka has signed up to President Xi Jinping’s signature foreign policy initiative, which aims to strengthen China’s land and sea trade routes.
India has snubbed Xi’s plan and skipped a May summit in Beijing that was attended by world leaders.
Samarasinghe said Hambantota will be purely a commercial port, but any routine port calls by foreign navies will be regulated by Sri Lanka as is the case with the Colombo port.
Two Chinese submarines called at Colombo in 2014 during the final year of former President Mahinda Rajapaksa’s tenure, angering New Delhi.
The new government of President Maithripala Sirisena turned down a Chinese request in May for another submarine call at Colombo shortly after Indian Prime Minister Narendra Modi visited the island.
Sirisena came to power in January 2015 promising to loosen ties with China after a decade of hefty funding by Beijing under his predecessor.
He suspended all big ticket Chinese-funded projects amid allegations of corruption. The projects have resumed after modifications to the contracts with the previous government.
Apart from the $1.12 billion sale price, the Chinese firm will invest another $600 million to develop Hambantota, Samarasinghe said.
The port has racked up losses of $300 million in the last six years, according to official figures. In addition, the government pays more than $60 million annually to service the port’s debt.
Sri Lanka seals controversial $1bn port deal with China
Sri Lanka seals controversial $1bn port deal with China
Jordan’s industry fuels 39% of Q2 GDP growth
JEDDAH: Jordan’s industrial sector emerged as a major contributor to economic performance in 2025, accounting for 39 percent of gross domestic product growth in the second quarter and 92 percent of national exports.
Manufactured exports increased 8.9 percent year on year during the first nine months of 2025, reaching 6.4 billion Jordanian dinars ($9 billion), driven by stronger external demand. The expansion aligns with the country’s Economic Modernization Vision, which aims to position the country as a regional hub for high-value industrial exports, the Jordan News Agency, known as Petra, quoted the Jordan Chamber of Industry President Fathi Jaghbir as saying.
Export growth was broad-based, with eight of 10 industrial subsectors posting gains. Food manufacturing, construction materials, packaging, and engineering industries led performance, supported by expanded market access across Europe, Arab countries, and Africa.
In 2025, Jordanian industrial products reached more than 144 export destinations, including emerging Asian and African markets such as Ethiopia, Djibouti, Thailand, the Philippines, and Pakistan. Arab countries accounted for 42 percent of industrial exports, with Saudi Arabia remaining the largest market at 955 million dinars.
Exports to Syria rose sharply to nearly 174 million dinars, while shipments to Iraq and Lebanon totaled approximately 745 million dinars. Demand from advanced markets also strengthened, with exports to India reaching 859 million dinars and Italy about 141 million dinars.
Industrial output also showed steady improvement. The industrial production index rose 1.47 percent during the first nine months of 2025, led by construction industries at 2.7 percent, packaging at 2.3 percent, and food and livestock-related industries at 1.7 percent.
Employment gains accompanied the sector’s expansion, with more than 6,000 net new manufacturing jobs created during the period, lifting total industrial employment to approximately 270,000 workers. Nearly half of the new jobs were generated in food manufacturing, reflecting export-driven growth.
Jaghbir said industrial exports remain among the economy’s highest value-added activities, noting that every dinar invested generates an estimated 2.17 dinars through employment, logistics, finance, and supply-chain linkages. The sector also plays a critical role in narrowing the trade deficit and supporting macroeconomic stability.
Investment activity accelerated across several subsectors in 2025, including food processing, chemicals, pharmaceuticals, mining, textiles, and leather, as manufacturers expanded capacity and upgraded production lines to meet rising demand.
Jaghbir attributed part of the sector’s momentum to government measures aimed at strengthening competitiveness and improving the business environment. Key steps included freezing reductions in customs duties for selected industries, maintaining exemptions for production inputs, reinstating tariffs on goods with local alternatives, and imposing a 16 percent customs duty on postal parcels to support domestic producers.
Additional incentives in industrial cities and broader structural reforms were also cited as improving the investment climate, reducing operational burdens, and balancing consumer needs with protection of local industries.
