Investment sentiment will not be affected by the controversial resumption of the suspended Colombo Port City project, as Sri Lanka aims to become an important hub along the China-proposed "One Belt, One Road" initiative (B&R initiative), Sri Lanka's ambassador to China told the Global Times on Friday.
China and Sri Lanka made the joint decision to resume the stalled construction of the Colombo Port City in April, a $1.4 billion project led by Chinese State-owned enterprise China Communications Construction Co, according to media reports.
Suspension of the project was partially due to a failure to disclose information and investment conditions to the public, particularly those related to its environmental impact, Sri Lanka's ambassador to China Karunasena Kodituwakku told the Global Times in an exclusive interview on Friday.
Despite this progress, local Catholics, fishermen and environmentalists protested the resumption of the project in Colombo in April, claiming that it would cause significant environmental damage, the AP reported on April 6.
"The local authority, with regard to the environmental protection, has conducted a study," Kodituwakku said, noting that with its new modifications, the project will be in line with local environmental regulations.
The new government, elected in January 2015, has been emphasizing the path of group governance, in other words, greater transparency, Kodituwakku explained. As projects like the port city facility are closely related to the use of land in Sri Lanka, they require careful consideration and study on the part of the government, he added.
This single, isolated jincident is unlikely to affect the business confidence of foreign investors, Kodituwakku told the Global Times. "Our strategic location is vital [to the B&R initiative]," he said, noting the country will do its duties to promote global trade.
Besides those traditional sectors usually favored by Chinese investors, such as construction and infrastructure, emerging sectors such as tourism, fisheries and tea are worthy of closer attention, Kodituwakku noted.
(Global Times)
