Port City Project to recommence

Following discussions in Beijing and Colombo, the Government of Sri Lanka (GoSL) and China Harbour Engineering Co Limited (CHEC) have agreed to recommence the Port City Project. 
The Project will now be taken forward by a joint venture company to be established between the GoSL and CHEC. The reclaimed land will be vested in the joint venture company on a 99-year lease. There will be no free hold land. 

It was also agreed to proceed on the basis of the current agreement, which is based on 233 hectares of reclaimed land. The Supplementary Environmental Impact Assessment, which has now been completed, was based on 269 hectares. Any technical issue arising from this will be resolved in the future by the joint venture company and the relevant government authorities. 

The current agreement expires on 15th March 2016. A decision has, therefore, been taken to extend it by further 6-months pending the formation of the joint venture company and the signing of a new agreement.