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Chinese company behind Sri Lanka's suspended port city project outlines losses

Xinhua, March 11, 2015 Adjust font size:

A Chinese company engaged in the 1.4-billion-U.S. dollar port city project in Sri Lanka has obeyed a Sri Lankan government order to suspend work despite the loss of 380,000 U.S. dollars per day, according to a statement of the company on Wednesday.

China Communications Construction Company (CCCC) subsidiary China Harbour Engineering Company is creating the new island off Colombo's harbor, which was started during former President Mahinda Rajapaksa's decade in power.

"As a result of this suspension, CCCC estimates an initial direct loss for the company of over 380,000 U.S. dollars per day. Furthermore, the interest on the financial loan obtained by the company for the development of the project is being paid, regardless of the ongoing suspension," the company said in a statement.

Over 200 meters of the breakwater constructed so far, has been damaged due to the suspension, as the company is unable to take measures to protect the reclaimed land because of the suspension, it added.

The reconstruction of this damaged land area will be an additional cost the company will have to incur if and when the project commences again.

"The project employs approximately 1,000 direct personnel and a further 4,000 indirect employees, of which almost all are Sri Lankans and the sustainability of this workforce is also a concern for the company during this period," the company added.

CCCC reiterated that all stipulated processes required under the project agreement were followed before commencing the project' s construction in 2014.

"Without prejudice to its legal rights, the company assures it will continue to work with the Sri Lankan Government in providing further documentation and information needed to review the Colombo Port City Development Project," it noted. Endi