The Sri Lankan cabinet has decided to consider clearing the USD 1.4 billion Chinese funded and executed Colombo Port City Project after it gets environmental clearance.

Announcing this to the media in Colombo on Thursday, the cabinet spokesman, Rajitha Senaratne, said that the cabinet also decided to take the project away from the Sri Lanka Ports Authority (SLPA) and hand it over to the Urban Development Authority (UDA).

Asked specifically if the Chinese executor of the project, the state-owned China Communications Construction Company (CCCC), will continue, Senaratne said that the project will be done by the Chinese company.The cabinet decision does not affect the Chinese company's status.

Explaining the cabinet decision, the spokesman said that since it is an urban development project it should be under the UDA and not the SLPA.Further, the project had not got all the environment clearances.Once the clearances are secured, government will consider recommencing the project, Senaratne said.

Inaugurated in September 2014 by former Lankan President Mahinda Rajapaksa and the visiting Chinese President Xi Jinping, the Colombo Port City project was stalled when Maithripala Sirisena was elected Lankan President in January this year.The new government  found irregularities, including the absence of a key environmental clearance certificate and the cabinet's approval.

Nevertheless, the Sirisena government had taken the precaution of assuring  China that it was only correcting some mistakes made by its predecessor, and once this was done, the project will be resumed.

To keep up Lanka's friendly ties with China, the Lankan cabinet on Wednesday also decided to buy 18 sets of Diesel Multiple Units (DMU), 160 passenger coaches and 30 oil tank wagons from China.

In addition, to better use the USD 100 million loan given by the China Development Bank for building eight roads in the Weerkatiya-Tangalle-Middeniya area in South Lanka, the cabinet has chosen to spend the money on doing up more important roads in the area.
(The New Indian Express)