Sri Lanka, China to sign new pact for Colombo Port City project

China and Sri Lanka are looking into the option of a new pact for the Colombo Port City project. The Prime Minister of Sri Lanka has formed a committee to explore the opportunity of crafting a new agreement for the Colombo Port City project.

The Deputy Minister of Megapolis and Western Development Lasantha Alagiyawanna on Friday has updated the Parliament that the five-member committee involving secretaries is led by the Secretary to the Prime Minister.

Alagiyawanna said: “We have not entered into a new agreement yet; but the discussions are currently underway to enter into a new agreement.”

The deputy minister has further stated that the investors have made compensation claims worth $163 million for their losses that they suffered while the project was held up.

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

Alagiyawanna has also revealed that the investors have been previously offered 20 hectares of land on free hold basis, which has now been changed to a 99-year lease by the new government.

The deputy minister stressed: “Likewise, we were able to change close to 50 conditions for the benefit of our country.”

The Sri Lankan Government has formally updated the Chinese investors on the recommencement of the project in the middle of March after facing suspension for one year. (Reuters)