From K J M Varma

Beijing

After stalling the controversy-hit Colombo Port City project for a year, Sri Lankan premier Ranil Wickremesinghe today assured China to “speed up” the USD 1.5 billion Chinese-funded venture besides endorsing the ambitious Maritime Silk Road over which India has strategic concerns.

On a fence-mending visit to Beijing, Wickremesinghe – who received a red carpet welcome at the Great Hall of People – held talks with his Chinese counterpart Li Keqiang after which the two sides signed seven agreements.

They included an extradition treaty, MoUs on promoting investment and economic cooperation and preferential loan agreement for the second phase of the extension of southern highway in Sri Lanka.

But most importantly, both sides agreed to speed up the construction of the 583-acre Colombo Port City (CPC) project to be built by a Chinese state-owned company on reclaimed land that was stalled after the Maithripala Sirisena government, in which Wickremesinghe is Prime Minister, came to power last year.

It was halted over concerns related to its environmental impact.

The project was finalised during the previous Mahinda Rajapaksa regime.

“On CPC, both sides agreed to further speed up over-all and comprehensive resumption of the work at this project,” Xiao Qian, Director General of the Asia Department of the Chinese Foreign Ministry told the media while briefing the outcome of the meeting between the two Prime Ministers.

He said Sri Lanka has already made the announcement to resume work.

“Now we will go into further technical details,” Xiao said.

While there is no clarity on technical details, reports from Colombo quoted Sri Lankan officials as saying that the China Communication Construction Company (CCCC), which undertook the project is demanding USD 125 million penalties (USD 3.80 lakh penalty a day) as damages for stalling the project.

Sri Lankan officials also said Colombo wants relief as it is struggling to service USD eight billions obtained during Rajapaksa regime for various projects.

Reports said Wickremesinghe, who before his election had threatened to scrap the CPC for adverse environmental impact, is due to negotiate the penalty payment in his talks with Li.

The Sirisena government had earlier expressed serious reservations over the clause in the agreement to hand over 20 hectares of land to the CCCC on freehold basis with complete rights.

The project had created disquiet in India over the growing Chinese presence in Sri Lanka. India has also not yet endorsed the Maritime Silk Road proposal because of its strategic concerns over the Chinese domination in the Indian Ocean – often regarded as India’s backyard.

PTI

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