AFP
Colombo
Sri Lanka has yet to resolve a dispute with China over a $1.4bn development in Colombo despite a state visit to Beijing last week, a minister said yesterday.
New Sri Lankan President Maithripala Sirisena suspended the Chinese-backed construction of a “port city” in the capital following allegations that environmental clearances had not been obtained.
Some reports had indicated the project would go ahead following Sirisena’s three-day visit to Beijing last week.
But Deputy Foreign Minister Ajith Perera said the president had not discussed the project with his Chinese counterpart Xi Jinping.
“We have given them (Chinese companies) time to produce the environmental approvals, but they have not done that yet,” the minister
told reporters in Colombo.
Sirisena made India his first foreign destination after winning elections in January, seeking to rebuild ties with Delhi damaged by tensions over Beijing’s influence on the island
under his predecessor.
India is understood to be uneasy about China getting a foothold just outside the port of Colombo, which handles a considerable amount of Indian cargo.
If it goes ahead, the planned development would include a marina and a Formula One track - all just 250km (150 miles) from India’s coast.
However, Sri Lanka has decided to resume road development projects with China.
Udaya Ranjith Seneviratne, secretary of the Sri Lankan ministry of highways, higher education and investment promotion, told Xinhua that the ministry had already made payments to Chinese contractors for the projects.
Some Chinese companies had earlier decided to suspend some of the projects owing to
non-payment.
One of the projects to immediately recommence work would be the extension of the Southern Expressway, Seneviratne said.
“We paid the Chinese companies Rs1bn (nearly $7.6mn) last week so that they could continue with the projects without any hindrance. The government is committed to continuing these road projects with China and we have informed the companies to accelerate their work so that they could finish soon,”
Seneviratne added.
He also said that the Sri Lankan government would continue to give road development projects to these Chinese companies as the government valued the development projects done by China in the past.
