Sri Lanka suspends China port city project

Colombo, March 5

The Sri Lankan Government today temporarily suspended work on the construction of a controversial $1.5 billion Chinese port city project.

"The Cabinet has decided to temporarily suspend with immediate effect the work in the port city project. The cabinet sub-committee on the project has not approved it," Cabinet spokesman Rajith Senaratne said.

The decision to suspend the project even temporarily has spared new President Maithripala Sirisena's government from embarrassment. In the run up to the January presidential election, Sirisena's rival, former president Mahinda Rajapaksa was the subject of opposition criticism over the project. The new government alleged the real estate deal with China was signed without Cabinet approval and without following procedures, and hinted at corruption.

The project was to include shopping malls, water sports, golf, hotels, apartments and marinas.

The Colombo Port City project is seen as the single largest private sector development ever in the country.

The project was expected to play a key role in China's ambitious 'Maritime Silk Road' project in India's backyard. In September, Chinese President Xi Jinping had inaugurated the construction on the project, which is part of China's attempt to restore its ancient prestige and historical links along the maritime route through Southeast and South Asia. — PTI