All outstanding issues pertaining to Colombo Port City project with Chinese government and the company handling the project have been resolved, Minister of International Trade Malik Samarawickrama told Ada Derana.
He stated that Cabinet approval has been granted to recommence the port city project since the the Environmental Impact Assessment (EIA) report has also been approved.
The project has been suspended from February 2015 over environmental issues while a comprehensive environmental impact assessment was called.
The Cabinet Committee on Economic Management has recommended allowing resumption of the project subject to limitations and conditions stipulated in the EIA report, the government said in a statement.
Accordingly, the proposal made by Prime Minister Ranil Wickremesinghe, to extend the project agreement for a further period of six months from 15 March 2016, was approved by the Cabinet of Ministers.
The Sri Lankan company CHEC Port City Colombo (Pvt) Ltd, which is handling the project for Chinese investor, China Communications Construction Co Ltd (CCCC), signed the original deal under the then government of Mahinda Rajapaksa.