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The Colombo Port City project is increasingly being referred to as one of the main hopes with regard to the much needed foreign direct investment that the country is desperately in need of in the long run. Although the project aroused a great deal of controversy when it was first mooted in 2014 by the Government of President Mahinda Rajapaksa the then Government went ahead with the project despite the concerns expressed in different quarters. The Chinese Prime Minister himself laid the foundation stone for the project during the tenure of President Rajapaksa.

The project was proclaimed to be for the purpose of building a new city on reclaimed land off the coast of Colombo, with modern infrastructure and facilities, to attract investment and boost the country’s economy. The project was to be a joint venture between the Sri Lankan government and China Harbour Engineering Company (CHEC), a subsidiary of China Communications Construction Company Ltd.

Some of the main objections that were voiced with regard to the Project at the time it was announced were:

1.   Environmental concerns: Environmentalists raised concerns about the impact of the project on the marine environment, including the destruction of coral reefs, damage to marine ecosystems, and the potential for pollution.

2.   National security concerns: There were concerns about the security implications of the project, including the possibility of foreign influence and control over the new city, as well as the potential for espionage and other security risks.

3.   Economic concerns: Some critics argued that the project would be too expensive and would not provide enough economic benefits to justify the investment.

4.   Lack of transparency: There were concerns about the lack of transparency in the project’s planning and decision-making process, including allegations of corruption and favoritism in awarding contracts.

Several foreign policy implications of the Port City project for
Sri Lanka were also noted by the detractors.

One of the key implications that were discussed were the country’s relations with China. Since the project was a joint venture between the Sri Lankan government and China Harbour Engineering Company (CHEC), it was seen as a symbol of the over dependence of Sri Lanka on China. Sri Lanka’s dependence on China for the project’s funding and technology was seen as deepening its economic and political ties with China thus opening the possibility of concerns among other countries, particularly India and the United States. The perception among these countries that Sri Lanka was tilting too far towards China could result in them responding by adjusting their own foreign policies towards Sri Lanka.

Overall, the Port City project will continue to have significant foreign policy implications for Sri Lanka not only because it is being built by the Chinese but also because of its strategic geographical location. Sri Lanka’s response to these implications will depend on how it balances its economic and political interests with the concerns of other countries and the need to protect the environment.

Some political groups also expressed opposition to the Port City project due to concerns about national sovereignty. They argued that the project could lead to increased Chinese influence in Sri Lanka, which could compromise the country’s independence and strategic interests.

Overall, the opposition to the Port City project is multifaceted and reflects a range of concerns about the environmental impact, economic feasibility, and national sovereignty implications of the project.

When the Yahapalana Government came to power in 2015 it suspended work on the Project and launched an investigation into the concerns raised by political and civil society actors.

One of the main reasons was concerns over the environmental impact of the project. The Port City project involves reclaiming a significant amount of land from the sea, which could have a detrimental impact on the coastal ecosystem, including the potential destruction of coral reefs and fish habitats. The government wanted to ensure that environmental impact studies were conducted and measures were put in place to mitigate any negative effects.

Another reason was the lack of transparency and accountability surrounding the project. The Port City project was initiated by the previous government without proper public consultation and transparency. The Yahapalana government wanted to review the project and ensure that it was in line with the country’s development goals and that it benefited the country as a whole rather than just a select few.

Finally, there were concerns about the financial viability of the project. The Port City project is a massive undertaking, and there were doubts about whether it would generate sufficient returns to justify the significant investment required. The government wanted to conduct a comprehensive financial review before proceeding with the project.

After a review of the entire project the Yahapalana Government faced with a fait accompli decided to proceed with the project but decided to position it as a Financial Centre.

In May 2021 the Sri Lankan Parliament passed the Colombo Port City Economic Commission Bill in May 2021, which established a new regulatory body to oversee the development of the Port City project. Once again the bill was controversial, with critics raising concerns about the potential impact on Sri Lanka’s sovereignty and the lack of transparency around the project. However, supporters argued that the Port City project would bring much-needed investment and economic growth to Sri Lanka.

There is not much information in the public domain with regard to the flow of investment into the Port City and whether it meets the expectations of the country. What is worrying however is whether legislators understand and adequately evaluate concerns expressed by public interest groups. An example of this was seen last week when Parliament debated regulations relating to the activities in the Port City.

Speaking in Parliament during the debate former Minister in the Yahapalana Governement Champika Ranawaka under whom the Project was placed outlined some of the reasons for the suspension of the Project during the Yahapalana Government. He specifically pointed out the absence of an Environmental Impact Assessment before the previous government embarked on the project.

He had called for a comprehensive environmental impact assessment of the project and called for greater transparency in the project’s financing and management.

However Government speakers who followed him in the debate ignored the criticism about the lack of environmental due diligence and blamed the Yahapalana Government for delaying the project. They implied that if this was not done and the project completed on time the country would not have faced the current economic crisis. They forgot to mention that it was President Ranil Wickremesinghe who was the Prime Minister when it was decided to suspend the project in 2015.

Be that as it may whether the country can put all its eggs in the Port City basket remains to be seen.

(javidyusuf@gmail.com)