The Sri Lanka government handed over the assets and management rights of its southern port of Hambantota to China Merchants Port Holdings (CMPort) on Saturday, CCTV.com reported.

It was the first time the South Asian country has transferred the authority of a port to another country.

The China-built deep-sea port of Hambantota in Sri Lanka. [File Photo: AP]

Hambantota port will become a significant driving force for Sri Lanka's economic development, said Priyath Bandu Wickrama, chairman of the state-run Sri Lanka Ports Authority (SLPA). He said he believes that under the management of CMPort, the world's second-largest port operator, Hambantota will become a competitive port worldwide.

As an important part of the "Belt and Road" Initiative, the project will play a demonstration role to help attract more South Asian countries to cooperate with China, according to Yi Xianliang, Chinese ambassador to Sri Lanka.

A photo taken on July 29, 2017, shows the signing ceremony for the leasing of Sri Lanka's deep-sea port of Hambantota to China Merchants Port Holdings in Colombo, capital city of Sri Lanka. [Photo: VCG]

Sri Lanka authorities signed a long-delayed 1.5 billion-U.S.-dollar deal to lease the deep-sea port of Hambantota to CMPort four months ago. The two sides agreed to the terms of a 99-year concession agreement concerning the development, management and commercial operations of the Chinese-built port.

According to the deal, CMPort will hold a 70 percent stake, with Sri Lankan firm SLPA holding the remaining 30 percent.

Yi earlier said that China will invest another 5 billion U.S. dollars in the next three to five years to create 100,000 jobs "if everything goes well."