Sri Lanka announces resumption of Chinese Colombo Port City project

Sri Lankan Government has formally announced the resumption of work on the stalled Chinese Colombo Port City project.
The announcement was made in the Joint Statement by China and Sri Lanka at the conclusion of the official state visit of Prime Minister Ranil Wickremesinghe to Beijing.
Key highlights of the Joint Statement

• Both sides will use the Chinese initiative to develop a 21st Century Maritime Silk Road to advance infrastructure development in Sri Lanka.
• China has pledged fresh support to the Sri Lanka in infrastructure development.
• Both sides will also advance development the China-Sri Lanka Free Trade Agreement (FTA) negotiations, promote joint ventures and expand cooperation in the areas of economy, culture, science and technology.

Background

• Sri Lankan Government’s announcement comes at a time when the island country is facing a debt crisis with looming repayments of Chinese infrastructure loans.
• China is stressing on cooperating with Sri Lanka in further developing the infrastructure. While the Sri Lanka has committed to revive the Chinese Port City Project in order to work out solutions to ward off immediate Chinese loan repayment concerns.

Month: Current Affairs - April, 2016