The suspension of work in Colombo Port City may soon be lifted as Premier Li Keqiang told visiting Sri Lankan Prime Minister Ranil Wickremesinghe that he will work for the resumption of the project. (Photo : Reuters)
Sri Lankan Prime Minister Ranil Wickremesinghe has dispelled issues that the Chinese investment in Sri Lanka poses a threat to other countries, such as India, China Daily reported.
The Sri Lankan prime minister made this pronouncement during his visit to Beijing, in which he sought more Chinese investment for the country, while the issue of compensation claim from a Chinese company involved in a major port project is still unresolved.
As he ended his first visit to China on Saturday, April 9, Wickremesinghe said that a special status was given by his government to the Colombo Port City project and that many Chinese investors have been attracted by the port's profitable future.
"The port city and megalopolis is not a threat to anyone. It's an opportunity for everyone to make money," Wickremesinghe said.
"We met with many Chinese companies and they are all interested in coming into Sri Lanka," the Sri Lankan leader added.
In 2013, Sri Lanka has contracted the state-owned China Communications Construction Co. with investment of $1.4 billion for the construction of the Port City project, the biggest single foreign investment in the country. But in January last year, the new Sri Lankan government ordered a review and the project was suspended.
It was estimated that the suspension has caused the Chinese company losses of more than $380,000 a day, to which it sought compensation of $125 million. The Sri Lankan government said it is willing to negotiate as it cannot pay the amount.
Premier Li Keqiang told Wickremesinghe on Thursday, April 7, that it will work with Sri Lanka for the resumption of the project.
Wickremesinghe said that he did not think the compensation was a major problem, that is why he did not discuss it with Chinese leaders during his visit.
The Sri Lankan leader said that he would welcome Indian companies in the port project, although he said that it is a joint venture between Chinese and Sri Lankan companies, adding that they have discussed the issue with the Chinese government and Chinese banks.
Chinese and other companies have more opportunities for infrastructure development in the port city, which is being planned to become a "megalopolis" with a population of eight million, Wickremesinghe said.
"We welcome Chinese investment in areas including tourism, infrastructure and power," he added.
The Sri Lakan leader said that they are regaining the country's position as an Indian Ocean hub, in connection with the 21st Century Maritime Silk Road proposed by China.
