Sri Lankan Prime Minister Ranil Wickremesinghe upon his arrival in China for a three-day state visit. (Photo : Twitter)
China and Sri Lanka have resumed a controversial Port City project in Colombo, with the two countries expressing the desire for more cooperation with each other.
Sri Lankan Prime Minister Ranil Wickremesinghe made the announcement during the final leg of his three-day visit to Beijing on Sunday. Wickremesinghe said that his country and China has agreed to resume the $1.4-billion Colombo Port City project, the South China Morning Post reported.
The project was meant to develop the Sri Lankan capital into a major real estate hub and was initiated by Chinese President Xi Jinping in 2014.
The reclamation work in the surrounding area is expected to add 233 hectares to Colombo's total area.
Other major infrastructure projects planned for the city include a marina and a Formula One racetrack.
However, the project proved controversial, with China being accused of using the development project to strengthen its presence in the region and protect its interests against rival country India.
Sri Lankan President Maithripala Sirisena halted the project in Jan. 2015 and ordered a review of the contract over allegations of irregularities made by the previous administration in awarding the project to China Communications Construction Company. The previous government has also been heavily criticized for supposedly relying too much on Chinese investments.
China reportedly expressed dismay over the stalling of the project.
Wickremesinghe asserted that the Colombo project should not be seen as a threat to anyone. "The Chinese have not asked for any military base in Sri Lanka," he remarked. The prime minister also clarified that the proposed Port City is intended to allow all parties to earn, Channel New Asia reported .
Aside from the resumption of work on the Port City project, Sri Lanka has also reportedly sought for China to reschedule some of the former's past loans amounting to $5 billion.
The two countries have also agreed to push through with another major development project, the proposed Hambantota seaport in Sri Lanka's southern coast.
