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Beijing reminds Colombo of its obligations while it reviews Port City project
China has reminded Sri Lanka to keep its promise to stay in touch and consult them while the US$ 1.5 billion Colombo Port City project is being reviewed, said Chinese Foreign Ministry spokeswoman Hua Chunying in Beijing on Friday,
The official news agency Xinhua reported that China will closely follow developments.
Colombo Port City is being developed by China Harbour Engineering Company, an arm of State-owned China Communications Construction Company, which is listed in Hong Kong.
She said Colombo should “properly resolve the issue in a way that helps Sri Lanka’s development and maintains the confidence of Chinese firms investing in Sri Lanka.’’
Hua noted that Beijing had been made aware by Colombo that the Colombo Port City project “was ‘suspended’, not ‘cancelled’’’. The project involving reclamation of land from the capital’s seafront, multi-year tax holidays granted through gazette notices and outright land leases to the Chinese company, has become a controversial undertaking for lack of transparency in the deal, inadequate information, as well as for its sheer scale and the luxury real estate including high-rise apartments, hotels, luxury marinas, malls, and golf facilities.
Sri Lankans are questioning the necessity for luxury, ocean-front real estate in a country where thousands of schoolchildren do not have toilets. A survey has shown that 1,300 primary and secondary schools in the country do not have proper sanitation.
Senior lawmakers have also expressed reservations publicly about the project and have alleged irregularities in the deal.
Hua observed that Foreign Minister Samaraweera who visited Beijing on February 27, had said that “Sri Lanka welcomes Chinese companies’ investment and development in Sri Lanka’’.
She remarked, “The review conducted by the Sri Lankan side, which is not exclusive to China’s cooperation projects in Sri Lanka, aims to create a better investment environment. The Sri Lankan side will keep in close contact with the Chinese side on the review result of China-related cooperation projects. China understands and respects the efforts made by the new Sri Lanka Government to improve its investment environment, and believes that the Sri Lankan side will properly resolve relevant problems and preserve Chinese companies’ confidence to invest in Sri Lanka in the overall interests of China-Sri Lanka friendliness and the fundamental interests of Sri Lanka’s national development.’’
Colombo Port City developer has appointed Hong Kong-based Atkins to study the luxury marina to be built. Atkins said it “will study the hydraulic modelling and the effect of the marina breakwater on the near shore coastal conditions and the adjacent Beira Lake stormwater outlet.’’