Lanka must honour agreements: Chinese envoy on port project

A worried China today said it is important for the Sri Lankan government to support its investments and honour agreements in the wake of Colombo's decision to suspend construction on the USD 1.5 billion port project being developed by a Chinese company.
It was important for the new Sri Lankan government to support Chinese investment and honour agreements made by the state, the new Chinese Ambassador to Sri Lanka Yi Xianliang was quoted by state-run Xinhua news agency as saying in Colombo.
"We believe that the Sri Lankan side will reciprocate our goodwill. China has confidence in our bilateral relations because in the past decades we always stood by each other, in good or bad times," he said.

"China is willing to continue as a trustworthy and reliable partner of Sri Lanka and its people. No matter how the situation changes, the two sides should cherish the long standing bilateral friendship, and unswervingly stick to warm bilateral relations, advancement of bilateral mutually beneficial cooperation, as well as mutual support on international and regional affairs," he said.
He emphasised the important role played by these projects, estimated to be worth around USD 5 billion, in developing post-war Sri Lanka.
Meanwhile, the China Communications Construction Company (CCCC) which undertook the mega Colombo port project said it has obeyed a Sri Lankan government order to suspend work despite incurring a daily loss of USD 380,000.

"As a result of this suspension, CCCC estimates an initial direct loss for the company of over USD 380,000 per day. Furthermore, the interest on the financial loan obtained by the company for the development of the project is being paid, regardless of the ongoing suspension," the company said.

Over 200 metres of the breakwater constructed so far has been damaged due to the suspension, as the company is unable to take measures to protect the reclaimed land because of the suspension, it said.
"Without prejudice to its legal rights, the company assures it will continue to work with the Sri Lankan government in providing further documentation and information needed to review the Colombo Port City Development Project," it noted.

Sri Lankan Finance Minister Ravi Karunanayake said two days ago that there is no record that the CCCC has obtained the mandatory environmental impact and feasibility studies for the project, nor is there any document that shows the government cleared it.
Last week, the new Sri Lankan government temporarily suspended the project stated to be a key venture for China's new Maritime Silk Road (MSR) plans in the Indian Ocean region inking China with Europe via the Indian Ocean, the Red Sea and the Mediterranean Sea.