China hopes to finalise an agreement soon with Sri Lanka on the changes made to the controversy-hit USD 1.5 billion Colombo Port City project, including converting it into a joint venture.
"You may have noticed that the cabinet in Sri Lanka has passed a report and cleared the way for the resumption of the port project," Chinese Foreign Ministry spokesman Lu Kang told a media briefing here today.
Lu was responding to questions on Lankan Prime Minister Ranil Wickramasinghe's remarks at the end of his four-day visit here on April 9.
"We hope that the two sides can reach an agreement on an early date and the project can be resumed," Lu said.
"The cooperation between the two sides is based on equality and mutual trust. We hope Sri Lanka will proceed on the basis of long-term interests and the interest of the people and cooperate with China on expanding on mutually beneficial cooperation," he said.
Wickramasinghe, whose government had withheld the project for a year, has finally approved it with some changes.
The agreement for the project to be built by a Chinese firm was reached during previous Mahinda Rajapaksa regime. It was halted over concerns related to its environmental impact.
The Lanka government had earlier expressed serious reservations over the clause in the agreement to hand over 20 hectares of land to the China Communication Construction Company on freehold basis with complete rights.
The project had created disquiet in India over the growing Chinese presence in Sri Lanka.
The changes included making it a joint venture of the 230 hectare landfill project with a Lankan company, modifying the free land holding clause of to 99 years lease. The project has also been designated as a financial hub.
Wickramasinghe discussed the changes with Chinese leaders during his last week's visit here.
About Lanka's proposal to swap USD 8 billion Chinese loans with equity by acquiring stakes in Lankan companies, Lu said the two sides are exploring ways to cooperate.
"During the visit, the two sides discussed how to expand cooperation with equality and mutual benefits including cooperation on investment and infrastructure building. Sri Lankan Prime Minister welcomed China's investment in infrastructure projects in Sri Lanka. The two sides are exploring ways to cooperate. We will release relevant information in due course," he added.
