COLOMBO, Sri Lanka–A Chinese company said Tuesday it will resume construction of a $1.5 billion port city project in Sri Lanka, about a year after it was suspended because of questions about its environmental impact.
CHEC Port City Colombo said it welcomed the Sri Lankan government’s decision to allow the project to continue. It said a supplementary environmental impact study has been completed to “understand and fully assess the project’s impacts and mitigation measures in developing a comprehensive plan to maximize the benefits.”
The city is to be built on reclaimed land off Sri Lanka’s west coast and include a golf course, marinas, apartments, hotels and malls.
The project created disquiet in neighboring India over the possibility China might be allowed outright land ownership. China’s influence in Sri Lanka makes India anxious because it considers the Indian Ocean region to be its strategic backyard. Read more