China steps up diplomacy to save $ 1.4 b Port City deal

• Ambassador calls on Premier and Foreign Minister; Official reiterates importance of Sri Lanka honouring bilateral and commercial agreements

Chinese Ambassador Yi Xianlian with Prime Minister Ranil Wickremesinghe Chinese Ambassador Yi Xianlian with Foreign Minister Mangala Samaraweera

China has stepped its diplomacy to save the $ 1.4 billion Port City project after the President Maithripala Sirisena-Premier Ranil Wickremesinghe Cabinet last decided to temporarily suspend the biggest ever foreign funded venture subject to submission of required approvals by the developer. Following the suspension by Cabinet on Wednesday, the new Chinese Ambassador Yi Xianlian on Thursday called on Prime Minister Wickremesinghe and followed up with a meeting with Foreign Minister Mangala Samarweera on Friday before the latter took off to UK accompanying President Sirisena. The official statement by Chinese Embassy following the meetings sounded diplomatic stating “The two sides had friendly discussions on China-Sri Lanka relations.” It said Ambassador Yi also had frank exchange of views on China-Sri Lanka economic and trade cooperation, especially the cooperation on major projects. However sources said the controversial port city project did figure during the discussions. A high ranking Chinese Embassy official speaking on the condition of anonymity said the Sri Lankan Government should honor its commitments on bilateral and commercial agreements. This is in line with the Beijing based spokesperson of Chinese Foreign Ministry’s comments following the notice of suspension of port city project by Sri Lanka. The Colombo based official opined that going ahead with the port city project will cost nothing to Sri Lanka but will only benefit the country, its economy and people. He noted temporally suspending ongoing foreign direct invest projects and changing the policies merely due to change in government sends a wrong signal to foreign investors. He also stressed the need of continuation of policies of a country to build the trust of the foreign investors. “It is an international norm that new government honor commercial agreements and bilateral agreements entered by its previous government,” the official who did not wanted to reveal his name said. China has maintained that developer and promoter of the project China Communications Construction Company has followed the due process though the Cabinet on Wednesday expressed doubt and gave two weeks time for submission of approvals received previously. The official also said the legal rights of the foreign investors should be protected and respect their trust as this company wishes to join hands with the people of this country for a brighter future for Sri Lanka, he further said. “Some people misunderstood the project because of its name “Port city.” This is not a port project this is a city development project,” the official said adding that once completed the city will be like a mini Singapore with a wide range of socio-economic benefits. Prime Minister Ranil Wickremesinghe, who had earlier warned the Port City would be scrapped if it failed to meet environmental standards, appointed a special committee to probe the validity of the deal. This committee had submitted a report to the country’s powerful Cabinet of Ministers on Wednesday outlining that relevant approvals had not been met. “Taking into consideration the recommendations of this interim report, the Cabinet of Ministers has approved to temporarily and immediately suspend the implementation of the project and to advise the relevant company to present within a period of two weeks the approvals obtained for the project,” Cabinet Spokesman and Health Minister Rajitha Senaratne told reporters on Thursday. The committee is headed by Ajith de Costa. Professor RuchiraKumarathunga, Dr. N.P. Wijeyananda, Dr. Anil Premarathne, Professor Samantha Hettiarachchi, Channa Fernando, A.S. Obesekara and SunilaJayawardena are the other members. Their report will be further examined by a Cabinet Sub-committee headed Premier Wickremesinghe. The Chinese Embassy in its statement following Thursday’s meeting with Premier Wickremesinghe said the two countries have profound traditional friendship, the Chinese side is committed to promoting the development of China-Sri Lanka Strategic Cooperative Partnership. “China is willing to further strengthen cooperation in various fields together with the Sri Lankan side, so as to benefit peoples of both countries. We believe that under the leadership of the new government, Sri Lanka will have more achievements in various fields,” the statement added. During the meeting with Minister Samarasinghe , the Ambassador Yi had stressed that China is committed to develop its relations with Sri Lanka, and is ready to make joint efforts with Sri Lanka to strengthen the cooperation in various fields and people to people exchanges, so as to push the China-Sri Lanka strategic cooperative partnership to a new level. The statement said Minister Samaraweera said that the two countries are time-tested all weather friends. Sri Lankan government attaches great importance to it relations with China, and is willing to consolidate and deepen bilateral ties and cooperation in all areas. The Sri Lankan government will facilitate the Ambassador Yi’s mission in Sri Lanka.