ECONOMYNEXT –China Harbour Engineering Company Ltd (CHEC), a subsidiary of state-run China Communications Construction Company (CCCC)Limited, has resumed talks over an investment zone promised by the Sri Lanka government in Hambantota, State Investment Minister Dilum Amunugama said.
The Sri Lankan government has promised 15,000 acres (6,070 hectares) of land in an industrial zone next to Hambantota Port which is under the control of the Chinese firm.
The zone is in the southern district of Hambantota, where China has already built a $1.5 billion port and airport, part of the island nation’s ambitious post-war economic revival plans.
According to the original plan, China was expected to invest $5 billion during the first five years and create 100,000 jobs.
However, politically-motivated protests against the investment zone being given to China, Easter Sunday attacks followed by the COVID-19 pandemic and economic crisis has slowed down the investment zone and related investments.
After the protests, the previous government led by Maithripala Sirisena agreed to provide 10,000 acres from Hambantota next to the port, instead of 15,000 and another 5,000 acres from adjacent Monaragala district.
“With the Covid and the recession, they (CHEC) also put it on hold,” Minister Amunugama told reporters in Colombo at a media briefing on Friday (13).
“Now again they came and reengaged. They spoke with us about whether they could start this. So, I have appointed a committee with two people from CHEC. My DG (director general) from BOI (Board of Investment), and also additional secretary from the ministry to reassess how much of land we have and where that land is and also for CHEC to decide how much of land they want and from where.”
CHEC appointed Singapore-based Surbana Jurong to draw up the plans for the first two phases of the zone which will include social infrastructure such as housing and schools.
The zone is next to the port in which China Merchants Port Holdings Company Ltd is granted an 85 percent stake on a 99-year lease for $1.12 billion.
“If the discussions are a success, then we can decide where the new zone is going to be,” Amunugama said.
China’s interest in the port has been part of its ambitious “Maritime Silk Route” to the oil-rich Middle East and onward to Europe. (Colombo/Oct 16/2023)