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Sri Lanka Port City Project Moves Ahead with China Development Bank Loan

Sri Lanka Port City Project Moves Ahead with China Development Bank Loan

Amid last month’s terror crisis, the Sri Lankan government is moving ahead with its economic cooperation with China, and one of its mega-projects, the Port City Project which has China as one of its backers. Sri Lanka will obtain a $100 million interest-free loan facility from the China Development Bank (CDB) to expand the proposed Port Access Elevated Highway to Marine Drive through Colombo Port City.

The Cabinet of Ministers on April 30 approved a proposal presented by Megapolis and Western Development Minister Patali Champika Ranawaka to sign a tri-party loan agreement with CDB and the China Harbour Engineering Co.’s (CHEC) Port City Colombo (Pvt.) Ltd. The interest-free loan will be long term, and made out to CHEC Port City Colombo (Pvt.) Ltd and the government. Conditions of the loan are still to be worked out between the Treasury and CDB, reported Colombo’s Daily Mirror today.

The Cabinet also approved a proposal presented by Minister Ranawaka to form a joint property management company between the government and CHEC Port City, for the management and maintenance purposes of Colombo Port City.

When Colombo Port City is completed, it is projected to have 80,000 residents and 250,000 daily commuters, and is expected to attract $15 billion in investments over the course of the project. The project includes the reclamation of 269 hectares of land, which has been completed, the construction of a breakwater, which is nearing completion, along with the development of roads, utilities and other infrastructure.