COLOMBO: Sri Lanka’s new government will go ahead with $1.5 billion China’s funded port city project planned by the previous president to avoid misunderstandings with Beijing.
Xi Jinping, China’s President officially launched the city’s development on an artificial island during a visit to Sri Lanka last September. The new government of President Maithripala Sirisena has said it wants to review all projects to ensure they are environmentally viable and corruption free.
Sirisena’s government has moved to mend relations with the United States and neighboring India which were strained during the pro Beijing administration of former President Mahinda Rajapaksa.
Chinese Assistant Foreign Minister Liu Jianchao will meet Sri Lankan Prime Minister Ranil Wickremesinghe on Friday.
Senaratne said an environment impact assessment was completed for the reclamation part of the project but not for the city development. He added the project will be discussed along with any alternations during a visit by Sirisena to Beijing next month.
Under Rajapaksa, relations with China strengthened, with heavy Chinese investment. The port city project became the face of Chinese influence in the country. Two recent port calls by Chinese submarines at a Chinese built terminal in Colombo fuelled speculation that Beijing wants to have port access along strategic sea lanes linking the energy rich Persian Gulf and economic centers in eastern China.
The submarine visits spooked India, which lies just 30 miles from Sri Lanka and shares US uncertainty about Beijing’s intentions as China’s military power grows.
China has become Sri Lanka’s largest lender in recent years, providing more than $6 billion through September 2013 for port facilities, highways and a new international airport.
