SRI LANKA: A deal eyeing $1.48n that Sri Lanka’s government signed with Chinese company China Communications Construction (CCCC) aiming for developing a port city in Colombo, Sri Lanka may be slipped out as the new Sri Lankan government not going in its favor.
The winner, Maithripala Sirisena, took the oath of office last Friday after defeating Mahinda Rajapaksa.
Sirisena’s new prime minister is Ranil Wickremesinghe. At an election meeting last month he announced, “I will stop it [the port project]. We have to protect our coastal area. If the port city is built, we will lose the coastal area.”
The Rajapaksa government was criticised for being too close to China, which has become a major investor in Sri Lankan roads, ports and other key infrastructure.
In response, the new president has pledged to rebalance the country’s foreign policy, although, according to local media, he has stated that “we are not against Chinese investment. We will maintain good relations with China too.”
CCCC signed a deal with the Sri Lanka Ports Authority in July 2013 to develop a port city at reclaimed land in Colombo. The reclamation was expected to be completed in a little over three years.
Under the agreement the Chinese company was to be given part of the reclaimed land on a 99-year lease in return for its investment.
