Sri Lanka's new government wants to revoke the agreement for China to lease the Hambantota 99-year seaport, citing national interests.

"We want them to return Hambantota port. The best situation is to return to the original state. We will return the loan on time as per the original commitment without any disturbance," Ajith said. Nivard Cabraal, former governor of Sri Lankan state bank, economic adviser to former president Mahinda Rajapaksa, said.

Former Prime Minister Ranil Wickremesinghe agreed to let China Merchants Port Holdings lease the Hambantota port for 99 years in exchange for a $ 1.1 billion loan, which, he said, helped ease the debt burden from China. . Mahinda Rajapaksa has borrowed China during 10 years in power to build projects back home.

However, the new government of President Gotabaya Rajapaksa, the former defense minister, younger brother Mahinda, is now opposed to port leasing transactions.

"This is a sovereign agreement" and it appears that it will be canceled or witnessed a major change, said Smruti Pattanaik, a researcher at the Institute for Defense Research and Analysis in New Delhi, India. know. "China may reconsider certain provisions considered important to the Rajapaksa government," he said.

The contract is considered to be detrimental to Sri Lanka's national security and the new government is trying to change the agreement, which was an important foundation in Gotabaya Rajapaksa's election campaign.

Hambantota is part of Xi Jinping's ambitious Belt and Road initiative. The initiative is controversial with accusing China of putting poor countries in the debt trap. The project also caused concern that China might use the seaport for military purposes.

China denied this concern, saying that Hambantota port is located on the important sea route from Asia to Europe, the two sides will be mutually beneficial and contribute to Sri Lanka's economy.

"Sino-Sri Lanka cooperation, including the Hambantota port project, is built on equality and consultation," the Chinese Foreign Ministry said in a press release. "China wishes to cooperate with Sri Lanka to turn Hambantota into a new shipping hub in the Indian Ocean and develop the local economy," the statement said.

Hambantota port location on the map. Graphics: Bloomberg.

"Sri Lanka will have to provide something similar, if not more financially attractive, for Beijing to agree to cancel the lease," said Brahma Chellaney, professor of strategic research at the Research Center. Policy Research in New Delhi, said. "When the Rajapaksa family comes to power, China expects to increase its influence in Sri Lanka."

"Once signed, bilateral agreements become serious deals, but we also have to take into account national interests. If a government has already reached an agreement, then the new government needs to find a way. knowledge and methods to negotiate in good faith, "Cabraal said.

China Merchants Port Holdings, a company with $ 93 billion in revenue, can use its experience spanning from China to Europe to promote Hambantota's development, where almost no ships can dock.

China Merchants Port Holdings' Hambantota joint venture last month reached an agreement with Japanese shipping group Nippon Yusen KK to transport cargo through the port.

New Port Secretary Johnston Fernando did not comment.