Sri Lankan Prime Minister Ranil Wickremesinghe has rejected US' claim that China might set up a "forward military base" at a strategic port it has leased to the communist nation, describing it as "imaginary".
Last year, Colombo had leased the Hambantota port to Beijing for 99 years after it failed to repay a Chinese loan of USD 1.4 billion for the project.
China gaining the control of the port has raised concerns that the country could use the harbour for military purposes.
Addressing a programme at London's Oxford University on Monday, Wickremesinghe said some people are seeing "imaginary Chinese Naval bases in Sri Lanka. Whereas the Hambantota Port is a commercial joint venture between our Ports Authority and China Merchants - a company listed in the Hong Kong Stock Exchange."
The Prime Minister said, "In this atmosphere of suspicion, many countries fear that the South China Sea issues can spill over, leading to future militarisation and military competition in the Indian Ocean."
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