Exclusive | Sri Lanka clears the decks for controversial Chinese project
Stalled Port City project looks set to be back on track by around February
The Sri Lankan government has cleared the decks for the controversial Colombo Port City project to resume, the country’s finance minister told the South China Morning Post.
Executives at the related Chinese companies who cannot be identified separately told the Post that the project was expected to restart around February, after all the final details had been worked out.
“We have given all the necessary clearances. Now it is up to the investors to sort out the minor details,” said Ravi Karunanayake. “On our part, the government is happy with the environmental impact assessment [EIA] report for the project. It is now under public consultation.”
The absence of a proper EIA was cited as a major reason for pulling the US$1.4 billion project – which will see a spanking new business district the size of Monaco rise from the ocean – that was cleared by former China-friendly president Mahinda Rajapaksa. Colombo Port City is among the several big-ticket Chinese-backed infrastructure ventures put on hold after Rajapaksa lost in January’s election.
Inaugurated by President Xi Jinping in September and financed by state-controlled and Hong Kong-listed China Communications Construction Co (CCCC) and executed by its subsidiary CHEC Port City Colombo, the project has driven a wedge between Beijing and Colombo, once one among China’s strongest allies in the region.
