CPC project: Lanka finally grants permission to China
China finally got the green signal to build the vast Colombo Port City Project in Sri Lanka's capital city after several controversies. The Sri Lankan government announced that the cabinet committee on the project has recommended allowing the resumption of the CPC project. The 233-hectare CPC project was initially inaugurated in 2014 and expected to have residential areas, a marina and a Formula-One racetrack.
What is Colombo Port City Project?
Colombo Port City was an offshore city planned to be constructed on reclaimed land in the capital of Sri Lanka. The budget of the project was estimated to be $1.5bn and was expected to begin in 2011 but was stopped. Later, Sri Lankan authorities announced that China Harbor Engineering Corporation would undertake the reclamation, and the project would start in September 2014.
Opposition against the project
The Colombo project was surrounded by controversies and was sharply criticized for the hazards and adverse effects it would have on the environment. The then Opposition, 'United National Party' was against the project and suspended it after coming into power.
Sri Lankan Government temporarily suspends Colombo project
The Sri Lankan government had temporarily suspended the $1.5 billion Colombo Port City project's construction work repossessed by the Chinese Harbor Engineering Corporation. Rajith Senaratne, the cabinet spokesperson had stated that the cabinet committee on the project had not approved it, and the construction work would be suspended temporarily with immediate effect. The project would recommence only after a transparent, environmental-friendly deal was signed.
CPC project - China's major focus
Chinese Vice-Minister of Foreign Affairs, Liu Zhenmin arrived in Sri Lanka to review Chinese-investments as the elected-government was neutral on foreign-policies unlike the previous-government. China tried to stay focused on the Colombo-project which was shelved by the government.
Sri Lanka expresses interest to revive Colombo project
After China had made its efforts to mend its ties with Sri Lanka, the Sri Lankan government expressed that they are banking on China to invest in the Colombo project. Sri Lankan Deputy Minister of Foreign Affairs stated that they had spent on the project but didn't have revenue yet, and invited China to revive the Colombo-project and invest in an industrial park there.
SL government gives clearance to CPC project
The Sri Lankan government had lifted its suspension of the China reclaimed Colombo Port City project in a trial to attract more Chinese investments. Sri Lankan Finance Minister, Ravi Karunanayake had stated that they had given the necessary clearances for the project and only the investors would further resolve the issues. It was officially stated that the project would recommence around February 2016.