China funds two flagship development projects
ASSISTANCE: As a follow up to the State visit of the President to
China in February a delegation led by Minister of Enterprise Development
and Investment Promotion, Dr. Sarath Amunugama visited China to meet
with the Ministry of Commerce of China and the Exim Bank.
They reviewed the implementation arrangements for the Hambantota Port
Development Project and the Puttalam Coal Power Project complete work as
The delegation had discussions with the Assistant Minister of
Commerce Chen Jian and President of the Exim Bank Li Ruogu, on overall
development assistance extended by China to Sri Lanka, with special
emphasis on the expeditious processing of the funding arrangements to
the tune of US $ 308 million for the Hambantota Port Development
The high priority attached by the Chinese Government for the
Hambantota Project was highlighted in the discussions confirming early
finalisation of procedural issues to facilitate the implementation. The
Minister thanked Jian and the Ruogu for releasing the first tranche of
US $ 68 mn for the Puttalam Coal Power Project.
The project being the first ever coal power plant in Sri Lanka, is
fully funded by the Exim Bank with a long term project financing of US $
The Government of Sri Lanka had already completed the settlement
schemes for re-settlers and access roads to the project site.
The China National Machinery and Equipment Import and Export
Corporation (CMEC) and China Harbour Engineering Company have already
commenced work at the relevant sites in Sri Lanka with respect to the
Coal Power Plant and the Hambantota Port Development Project and has
deployed their technical staff for the implementation work.
The Puttalam Power Project would entail the installation of a 300 mw
power plant and all the auxiliary facilities including a coal unloading
jetty, a 115 km power transmission line and other infrastructure
The Hambantota Port Development Project will include the construction
of a breakwater, two berths and approach channel, deepening of the
harbour basin and a berth and the construction of bunkering facility and
The Minister also met a number of leading Chinese investors who have
expressed their interest in investing in Sri Lanka. Finance Ministry
Secretary Dr. P. B. Jayasundera also accompanied the Minister.