Chinese firm claims heavy losses after Sri Lanka halts port project

Colombo, Mar 12: Sri Lanka's decision to halt the work of the USD 1.5 billion Colombo Port city project has caused heavy losses to a Chinese company in addition to threatening livelihoods of local people in the country.

In a statement, the Chinese firm claimed that as a result of the project's suspension the initial direct loss for the company is over USD 380,000 per day.

Further the interest on the financial loan obtained by the company for the development of the project is being paid, regardless of the ongoing suspension.

Over 200 meters of the breakwater constructed thus far, has been damaged due to the suspension, as the company is unable to take measures to protect the reclaimed land due to the suspension.

The reconstruction of this damaged land area will be an additional cost the company will have to incur, if and when the project commences.

"The project employs approximately 1,000 direct personnel and a further 4,000 indirect employees, of which almost all are Sri Lankans and the sustainability of this workforce is also a concern for the company during this period," it said.

The port city, a pet Chinese funded project of the former Mahinda Rajapaksa administration, came under criticism by the new government.

Prime Minister Ranil Wickremesinghe appointed a cabinet subcommittee and a further panel to probe environmental impact of the project leading to the temporary suspension of the project.

PTI