The cabinet has decided to suspend the Colombo Port City project temporarily, Cabinet Spokesman Rajith Senaratne said.
“The cabinet has decided to temporarily suspend the work in the port city project with immediate effect. The cabinet subcommittee on the project has not approved it,” said Senaratne.
Earlier, the Prime Minister also said that the $1.5 billion luxury real estate deal with China was signed without cabinet approval and without following procedures, and launched a new investigation to uncover any corruption.
“We need to see the feasibility study. We need to see the environmental impact assessment (EIA) and reassess the tax concessions given to it and land ownership issues,” Cabinet Spokesperson Minister Rajitha Senarathne said earlier. The Government also asserted that it would reconsider its decision on the project.
The last government entered into the deal with China, dubbed Port City, to build an offshore development on reclaimed land next to Colombo port. Critics say the details of the deal were not revealed and the environmental study not made public.
India has opposed part of the agreement that would give ownership to 20 hectares of land on a freehold basis to a Chinese state-owned company, next to Colombo port which primarily serves India for trans-shipment.
