Sri Lanka Cabinet clears China’s role in terminal project

Island nation ropes in Chinese firm for second phase

Sri Lanka has decided to rope in China Harbour Engineering Company (CHEC) to construct the second phase of the Colombo Port’s East Container Terminal (ECT), which was earlier to be developed jointly by Sri Lanka, India and Japan, until

In a Cabinet decision taken on Tuesday, Colombo approved the development of the strategic port terminal in stages, to be “totally operated” by the Sri Lanka Ports Authority. Prominent Sri Lankan firm Access Engineering and CHEC have won the bid to construct the facility, the Department of Government Information said in a statement.

CHEC, a subsidiary of the state-owned China Communications Construction Company, is already involved in strategic infrastructure projects in Sri Lanka, including the $1-billion Colombo Port City coming up near Galle Face — the capital’s iconic seafront — and a four-lane elevated highway connecting Colombo’s suburbs, with a near-$1-billion investment. The terms of the highway deal allow the state-run Chinese firm to own and run the highway for 15 years before transferring ownership to Sri Lanka.