Whose airspace is it? Fresh row in Sri Lanka over Chinese-funded Port City project

China hits back after aviation authority says air above port project will be Chinese-held

The project, near Colombo port, was inaugurated by Xi Jinping in September. Photo: Reuters

Debasish Roy Chowdhury in Colombo-Tuesday, 17 March, 2015

The controversial Colombo Port City project has run into more trouble, with Sri Lanka's Civil Aviation Authority warning the airspace over the Chinese-held area in the development would be controlled by China, drawing heavy criticism from Beijing.

Sri Lanka's director-general of civil aviation and chief executive H.M.C. Nimalsiri told the South China Morning Post: "Given the media rumours of land ownership in the project, we felt it necessary to alert the government to the legal status of the airspace."

The US$1.4 billion real estate project, inaugurated by President Xi Jinping in September, is financed by state-controlled and Hong Kong-listed China Communications Construction Co (CCCC). Under the deal, CCCC is to reclaim 233 hectares of land off Colombo. Of this, CCCC would get 108 hectares, including 20 hectares on freehold basis and the rest on a 99-year lease.

The authority's stance is likely to provide grist for the opponents of the stalled project who have alleged that granting a Chinese state-owned company land would pose security threats. That argument has gained traction since two Chinese submarines docked in Colombo last year.

The Civil Aviation Authority's internal memo to the government on airspace was reported by Sri Lanka's state-run Daily News yesterday in a report headlined "Flying over Port City a Taboo!"

The Chinese embassy lashed out at the report, saying it was devoid of "basic common sense" and pointed out a Chinese company would hold the land, not the Chinese government.

Nimalsiri said the embassy had clarified the matter with the aviation authorities. "But since the Chinese company is state-owned, it is up to the legal department of the government to evaluate the status of the airspace."

Asked if China would control the airspace, Sri Lanka Ports Authority vice-chairman Captain Asitha Wijesekera told the Post that he had not seen any such agreement. "This is the first time I am hearing about it."

Colombo Port City is among the several Chinese-funded projects that have come under the scrutiny of the new government, which alleges large-scale corruption by the previous government of Mahinda Rajapaksa, who was ousted in the presidential elections in January.

The new government has temporarily suspended the project, asking the Chinese company to show the documents on the basis of which it started work.

Meanwhile in Beijing, the government said it was "deeply concerned" about the halted Port City project. "We hope Sri Lanka can properly handle the issue and protect the legal interests of Chinese investors," Ministry of Commerce spokesman Shen Danyang said yesterday.