No 'debt trap' at port in Sri Lanka

China said on Tuesday it has worked with Sri Lanka on the Port of Hambantota in an equal and mutually beneficial way, dismissing United States media reports that it took over the port through "a debt trap".

"China has encouraged Chinese companies to carry out the cooperation on the basis of equality and mutual benefit and according to business principles," Foreign Ministry spokesman Lu Kang said in a daily news conference.

Chinese financial institutions offered support to help Sri Lanka resolve the shortage of funds for the project and later worked to readjust the allocation of assets according to Sri Lanka's wish, Lu said.