India increasingly concerned over China’s influence on Sri Lanka port city project

India’s concerns over China’s growing influence in Sri Lanka have been exacerbated after the approval of controversial legislation governing a Chinese-funded US$1.4 bn project to build a SEZ next to the main port in Colombo. The Colombo Port City Economic Commission Bill was passed by Sri Lanka’s 225-member parliament last month. Among other things, it empowers a seven-member body appointed by the president with complete control over all decisions related to the Colombo Port City zone. The project would be administered largely by the SEZ’s major investor, CHEC Port City Colombo, a unit of state-owned China Communications Construction Company.