Port City project likely to resume in February - report

The government of Sri Lanka is set to reverse its decision to block a Chinese-funded port development in Colombo, according to a report in China’s state news agency, Xinhua.

Xinhua quotes an anonymous source in the Sri Lankan government as saying that the $1.4bn Port City scheme is likely to resume in February following discussions between the two governments.

Xinhua’s source said the necessary documents to resume work, including the environmental management plan, had been submitted to the Sri Lankan government and were under review.

Work on the scheme began September last year under the regime of President Mahinda Rajapaksa but the new government of President Maithripala Sirisena suspended the project and launched a comprehensive review into it after winning the election in January this year.

The $360m first phase of the port was opened in 2010, and was financed by the Export Import Bank of China.