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Sri Lanka project halt costly for Chinese firm

Colombo (EconomyNext) – China Construction Communication Company (CCCC) said Sri Lanka’s decision to stop its Colombo port city work was costing it 380,000 US dollars a day and warned it may have to lay off its mainly local workforce.

The company said in a statement it had complied with "all stipulated processes" required under the 1.4 billion dollar project.

It also said a breakwater being built had got damaged after the new government ordered a temporary halt to the work.

The government has said the company had not complied with necessary environmebntal approvals and that it had to examine more closely the social and environmental impact of such a large reclamation project.

CCCC said it was continuing to pay interest on the loan obtained by the company for the project is being paid, "regardless of the ongoing suspension".

It said that currently the company is only performing quantity surveys at the site and stressed that "the protection of the work done on the site to date is critical and the project’s suspension restricts the company from taking adequate measures to safeguard this work, including the breakwater and landfill."
 
CCCC also said the project directly employs about 1,000 people and a further 4,000 indirectly, almost all Sri Lankans.

" . . . the sustainability of this workforce is also a concern for the company during this period."