Sri Lankan government holds up Colombo port city project of China

Date: March 06, 2015

China Sri Lanka India Colombo Port City project

Sri Lankan Government suspends China port city project in Colombo

 Sri Lanka’s newly elected  Maithripala Sirisena government on 5 March 2015 has temporarily suspended constriction work of China’s ambitious port city project in Colombo with immediate effect. The decision was taken in Cabinet meeting  based upon the Interim Report submitted by a cabinet sub-committee, which reported that this mega real estate deal with China was signed Without cabinet approval and without following procedures.

Colombo Port City project-

It is the single-largest foreign direct investment in Sri Lanka worth 1.5 billion dollar. The Port City project is seen as the largest private sector development in the country. It was to include shopping malls, water sports, golf, hotels, apartments and marinas.
The project, expected to play a key role in China's ambitious 'Maritime Silk Road' project in India's neighbourhood, strategic affairs experts here claimed. Chinese President Xi Jinping had inaugurated the construction of the project when he was in Colombo last September.

This $1.5 billion port next to the commercial port in Colombo, raised apprehensions in Delhi that Beijing is seeking influence in the island state with which New Delhi has had historical ties.