Sri Lanka has signed a 1(point)1 billion dollars 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. <br/><br/>The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe. <br/><br/>Sri Lanka's government said 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.

Sri Lanka has signed a 1.1 billion dollars 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. <br/><br/>The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe. <br/><br/>Sri Lanka's government said 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.

Sri Lanka has signed a 1.1 billion dollars 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. <br/><br/>The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe. <br/><br/>Sri Lanka's government said 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.