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
Record $14.4bn rise in Saudi holdings of US Treasuries
RIYADH: Saudi Arabia increased its holdings of US Treasuries by 10.71 percent in November in what was the largest increase since data tracking began in 1974, according to the latest official data,
The Kingdom’s US Treasury portfolio stood at $148.8 billion in the month, up $14.4 billion from October.
Following the increase, Saudi Arabia moved up one place to 17th place among the largest foreign holders of US Treasuries.
Countries including Saudi Arabia invest in US Treasuries for their perceived safety, liquidity, diversification benefits, and alignment with economic ties to the US.
The Kingdom’s holdings were 17.25 percent higher in November compared with January 2025.
The allocation highlights Saudi Arabia’s preference for longer-dated US government debt as part of its foreign reserve strategy, focused on capital preservation, liquidity, and diversification amid global market volatility.
Saudi Arabia’s holdings included $106.8 billion in long-term securities, accounting for 72 percent of the total, while short-term holdings stood at $42 billion, or 28 percent.
Globally, Japan remained the largest foreign holder of US Treasury securities at $1.2 trillion, followed by the UK at $888.5 billion, mainland China at $682.6 billion, and Belgium at $481 billion.
Canada ranked fifth with holdings of $472.2 billion, followed by the Cayman Islands and Luxembourg in sixth and seventh positions, with portfolios valued at $427.4 billion and $425.6 billion, respectively.
France placed eighth with $376.1 billion, followed by Ireland at $340.3 billion and Taiwan at $312.5 billion.
Other countries included in the top 20 list include Switzerland, Singapore, Hong Kong, and Norway, as well as India and Brazil.
The trade relationship between Saudi Arabia and the US remains strong, with the Kingdom exporting SR5.20 billion ($1.39 billion) worth of non-oil goods in October, data from the General Authority of Statistics showed.
Speaking to Arab News in October, Nasser Saidi, founder and president of economic and financial advisory services firm Nasser Saidi & Associates and a former minister of economy and trade in Lebanon, said US Treasuries are a critical pillar of stability.
“Holding treasuries allows Saudi Arabia to meet its international payment obligations — finance imports, service external debt, portfolio, and capital flows — provide a buffer against oil revenue shocks, while also generating a steady, low-risk stream of income,” he said.
