China's biggest investment project in Sri Lanka, suspended for months by Sri Lanka's new administration, is to continue, a report by China Daily stated.

According to Assistant Minister of Foreign Affairs Liu Jianchao, Sri Lankan President Maithripala Sirisena told Chinese counterpart Xi Jinping on Thursday that "what happened around the port city of Colombo is temporary and the problem does not lie with the Chinese side".

Sirisena's administration earlier ordered a review of the $1.4 billion Colombo port city project over allegations of wrongdoing since he took office in January.

The suspension caused concern to the Chinese who defended the project as being in line with local laws.

According to the report by China Daily, Liu told reporters that Sirisena said Sri Lanka is appreciative of China's support and assistance for the development of major infrastructure projects, including a new international port at Hambantota.

The Sri Lankan president promised that his country will continue to provide good conditions and environment for China's investment, Liu said.

China "puts Sri Lanka in an important position in neighborhood diplomacy", Xi said during the meeting, pledging that the two sides will continue to deepen cooperation in every sector.

President Maithripala Sirisena, who is in China for a four day official visit, met with the Chinese President this morning.
(With inputs from China Daily)