Colombo Port City Project agreement to be revised *No provision for land ownership 

by Zacki Jabbar-June 17, 2016

A new agreement would be signed shortly between the government and Chinese investor in the US$ 1.4 billion Colombo Port City Project, devoid of the land ownership clause, Prime Minister Ranil Wickremesinghe said in Colombo yesterday.

The PM told a press briefing at Temple Trees that the new arrangement with China Harbor Engineering Corporation (CHEC) would be for reclamation of land from the sea to build a Financial City. "It will no longer be a port project as such. There will also be no provision for freehold land instead any investor could lease or rent out space."

According to the original agreement between the Sri Lanka Ports Authority and CHEC signed under the last Rajapaksa government, the Port City was to be constructed between the southern edge of the new Colombo South Port and the Fort Lighthouse. The total area of sea to be reclaimed was set at 450 acres.

The project suspended on environmental grounds after the January 8, 2015 presidential election, was allowed to recommence in April this year, following official visits to Beijing by both President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.

Wickremesinghe has been credited with introducing the Port City concept to Sri Lanka through Singapore’s CESMA, but on a smaller scale and in the current location, when he was Prime Minister in 2004.It did not get off the ground due to a change in government.

Chinese investors would also be involved in the proposed Dockyard and Industrial Zone to be built in Hambantota, the Prime Minister revealed.

The PM said that Sino- Lanka relations would be strengthened with special arrangements being made to celebrate sixty years of diplomatic ties to be marked next year.