Sri Lankan parliament approves tax concessions for Chinese led port development

Sri Lanka's parliament on Friday approved tax exemptions for the Chinese led development of Hambantota port. 

“Today the parliament approved two motions... to grant certain tax incentives to those two companies operating the Hambantota port,” the country's Ports Minister Mahinda Samarasinghe told Reuters.

The development is to take place as a joint venture between China Merchants Port Holdings and Sri Lanka Ports Authority, who have a 70 - 30 stake respectively. 

In a vote in parliament on Friday, 72 voted in favour of the concessions, with 7 voting against. 

This prompted criticism from the opposition MP Dinesh Gunawardena who argued that the approval should require a two thirds majority. 

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