The agreement signed between the government and the relevant project company, CHEC Port City Colombo (Pvt) Ltd, on 16th of September 2014 expired on 15th of this month.
The proposal made by Arjuna Ranatunge, the minister of ports and shipping, to extend the above agreement for further 06 months from 15-09-2015, was approved by the Cabinet of Ministers.
The 1.4 billion US dollar Chinese Port City is to be constructed between the Southern edge of the new Colombo South Port and the Fort Lighthouse.
The total area of sea to be reclaimed is 252 hectares.
In a recent interview with LBO, the builders of Sri Lanka’s Chinese-funded port city project said discussions are still ongoing but in a positive direction.
The new regime suspended the project in March this year due to a pending investigation report.