Sri Lanka seeks new agreement for Colombo Port City


June 10, 2016 (LBO) – Sri Lanka’s Prime Minister has appointed a committee to look into the possibility of formulating a new agreement for the Colombo Port City project.

Deputy Minister of Megapolis and Western Development Lasantha Alagiyawanna told Parliament Friday that the 5-member committee comprising of secretaries is headed by the secretary to the Prime Minister.

“We haven’t entered into a new agreement yet; but the discussions are currently underway to enter into a new agreement,” the deputy minister said.

Alagiyawanna revealed the investors have claimed 163 million US dollars as compensation for the loss incurred during the period the project was stalled.

“They have expressed an initial consensus to withdraw it but no decision was taken yet to provide them land in lieu of the compensation.”

Deputy Minister emphasized that earlier, 20 hectares had been given to the investors on free hold basis but the new government was able to convert it to a 99-year lease.

“Likewise, we were able to change close to 50 conditions for the benefit of our country,” he added.

Sri Lanka’s government officially informed the Chinese investors of resuming the project in mid March following a complete environmental impact assessment, one year after its suspension.

The CHEC Port City Colombo (Pvt) Ltd is handling the project for the Chinese investor, China Communications Construction Co Ltd.