China Merchants to invest $500 million in Sri Lankan port

BEIJING - China Merchants Group Ltd (CMG), one of the nation's largest State-owned conglomerates, is investing in a container port in Sri Lanka as it seeks to expand in South Asia.

"The Colombo South Container terminal (CST) is CMG's largest investment project overseas", and the port will have annual throughput of 2.4 million 20-foot equivalent units (TEU) after opening in 2013, Fu Yuning, chairman of CMG, said on Monday.

Under the agreement between CMG and the Sri Lankan government, China Merchants Holdings International (CMHI), CMG's Hong Kong-listed subsidiary, will manage the facility for 35 years.