The Chinese company engaged in reclaiming land from the sea for the Colombo Port City project has reportedly requested permission to construct a protective bund surrounding the already reclaimed land.

This request is under discussion right now, said Deputy Minister for Policy Planning Dr. Harsha de Silva.

The Colombo Port City project is a 100% privately funded project undertaken by China Construction Communication Company Pvt. Ltd (CCCC) with USD 1.4 billion as foreign direct investment, began construction following an agreement with the government of Sri Lanka on 16 September 2014.

As a result of the suspension of this project by the new government, CCCC estimates an initial direct loss for the company of over USD 380,000 per day. Furthermore, 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, CCCC has stated.

The protection of the work done on the site to date is critical and the project’s suspension restricts the company from taking adequate measures to safeguard this work, including the breakwater and landfill. Currently the company is only performing quantity surveys at the site.

As a private foreign investor, CCCC reiterates that all stipulated processes required under the project agreement were followed before commencing the project’s construction in 2014.