China-run Hambantota Port accused of dodging over LKR 120 million in local taxes
News DeskLast Updated:08 July 2026, 09:02 PM ISTA Chinese-operated company managing Sri Lanka's Hambantota Port has been accused of evading over LKR 125 million in municipal assessment taxes, according to an. . .
News DeskLast Updated:08 July 2026, 09:02 PM ISTA Chinese-operated company managing Sri Lanka's Hambantota Port has been accused of evading over LKR 125 million in municipal assessment taxes, according to an RTI-based report. The dispute has now reached court, with the Municipal Council claiming large unpaid dues while several documents remain undisclosed. Representative photo: IANSA Chinese-operated company managing Sri Lanka's Hambantota Port has come under scrutiny after a Right to Information (RTI) inquiry reportedly found that it owes more than LKR 125. 9 million in unpaid municipal assessment taxes. According to a report byTimes Asian, official records show that the outstanding amount stood at LKR 125,938,793. 50 as of December 31, 2025. The figure includes unpaid taxes, penalty interest and other charges. The Hambantota Municipal Council had earlier issued a Red Notice to the port management over unpaid dues of more than LKR 85 million, warning that the property could be confiscated under Sri Lankan municipal laws if the payments were not cleared. The report said there had been earlier discussions about even higher tax arrears. However, the Municipal Council has clarified that the current outstanding amount is below the previously reported LKR 250 million. The port management challenged the council's action in court and secured an interim order that stopped authorities from treating the facility as a commercial port for tax purposes and from taking over the property. The Municipal Council later hired a private law firm to fight the case and reportedly spent LKR 1 million from public funds on legal expenses. The RTI applicant also sought documents related to the tax dispute, including valuation reports, Red Notices and court papers. However, the council reportedly declined to provide most of the requested records, saying they were confidential or linked to the ongoing legal proceedings.