China hopeful of Colombo project as Sri Lanka backs Silk Road
Sri Lanka's President Maithripala Sirisena voiced strong backing to Beijing's Maritime Silk Road initiative as he began his first visit to the country following his election victory in January.
China said on Thursday it was hopeful that the recently suspended $1.4 billion Colombo port project would go ahead, as Sri Lanka's President Maithripala Sirisena voiced strong backing to Beijing's Maritime Silk Road initiative as he began his first visit to the country following his election victory in January.
Sirisena, who rode to an election triumph pledging more transparency in allowing foreign investment after his predecessor Mahinda Rajapaksa presided over an influx of Chinese infrastructure deals, has assuaged Beijing's anxieties over its $1.4 billion Colombo port city deal that was suspended on account of environmental concerns, fulfilling a commitment he had made to voters.
Sirisena told President Xi Jinping that "what is happening with the port city is temporary", Chinese Assistant Foreign Minister Liu Jianchao told reporters following talks on Thursday morning at the Great Hall of the People in Beijing.
"[He said] the problem is not with Chinese side," Liu said. "And we hope to continue with the project once things are sorted out."
Xi welcomed Sri Lanka's participation as a "hub" of his pet Maritime Silk Road initiative, which envisages linking China with Southeast Asian nations and Indian Ocean countries by boosting maritime connectivity and building port infrastructure. Xi proposed that both sides use China's $ 40 billion Silk Road Fund and the soon-to-be-operationalised $ 50 billion Asia Infrastructure Investment Bank for infrastructure projects.
China is likely to unveil a blueprint of the silk road later this week at an economic forum in Boao, in the southern Chinese island province of Hainan, which will be attended by Sirisena as well as other foreign leaders, including the Presidents of Nepal and Indonesia.
"Sri Lanka is one of the hubs of the Maritime Silk Road," Assistant Foreign Minister Liu said. "We are really happy that the two countries agreed to have further infrastructure projects. Under the framework of the maritime silk road we will carry on existing projects. The Colombo port we believe is a very good, big project that benefits not only China but the Sri Lankan people as welll in economic development and job opportunities".
The two countries however unveiled only modest agreements on Thursday, announcing deals for Chinese support for health projects, refurbishing a court complex and an agreement between the Chinese Academy of Sciences and Sri Lankan Ministry of Urban Development, Water Supply and Drainage.
The new Sirisena government has said it would put in place a more balanced foreign policy. China became the biggest investor in Sri Lanka during the decade under ousted leader Rajapaksa. At the same time, with rising debt and few alternative sources of aid and investment, the new government has also sought to court Chinese investment and assure Beijing of providing a transparent environment.
Liu said China and Sri Lanka agreed "to strengthen trilateral cooperation with India". "China, India, Sri Lanka are all important countries. It is really beneficial for all three to have cooperation in areas like economic development and social development," he said.
Sri Lanka and China also discussed continuing defence cooperation, including training military personnel and the provision of military equipment, Liu said.