6 November 2013
Chinese investors have signed a $1.43bn agreement to build a mini-city in Sri Lanka’s capital which will include a Formula 1 racetrack.
Construction along Colombo’s shores is expected to start this December for just over three years and involves reclaiming 230 hectares from the sea.
The China Communications Construction Co (CCCC) will work with state-run Sri Lanka Port Authority to build the mini-city next to Colombo harbour, another Chinese construction project worth $1.2bn.
CCCC will keep a section of the reclaimed land for its own purpose while the rest will go to investors, reports Global Times.
The mini-city will be built on Colombo’s shores using 230 hectares reclaimed from the sea (Credit: Aidan Jones/Wikimedia)
The Sri Lankan government hopes the mini-city, with its eco-parks, residential areas, offices and shopping malls, will attract $15bn of investments.
China has also signed up to build a $272m railway, the first new railway construction in Sri Lanka within a century.
Funded by the Exim Bank of China, the railway will have the longest tunnel in the country and is due for completion in 2016.
Post-war Sri Lanka has benefitted hugely from Chinese investment: an estimated $4bn has been plugged into the country since 2009 to build major infrastructure projects.
These include a $1.3bn power plant and a $200m international airport.