USD1 bln expected from Hambantota port sale: CB Governor

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Nov 02, 2016 (LBO) – Sri Lanka could expect a one billion dollar inflow to the economy in about five months time through the sale of a stake in the Hambantota Port, the Central Bank Governor said on Tuesday.

The equity proceeds of a sale of an 80 percent stake to a Chinese investor could be received in five months, Governor Indrajit Coomaraswamy said.

“The sale of the Hambantota port where the country will get a billion dollar is particularly helpful. This should help to stabilise both the currency and the domestic interest rates,” Coomaraswamy said, adding it would be a boost to foreign reserves.

Prime Minister Ranil Wickremesinghe made the offer during a visit to China in April, to swap equity in Sri Lankan infrastructure projects against debt owed to China of around eight billion dollars.