China Development Bank provides $100 million interest-free loan for Colombo Port City Project (Linked to Record ID#33431)

China Development Bank provides $100 million interest-free loan for Colombo Port City Project In April 2019, the Government of Sri Lanka’s Ministry of Megapolis & Western Development, China Development Bank, and CHEC Port City Colombo (Private) Limited — a special purpose vehicle and wholly-owned subsidiary of CCCC — signed a $100 million tripartite loan agreement for the Colombo Port City Project.

However, it is known that the proceeds of the loan were to be used to construct an underground tunnel and access road to access reclaimed land on a 269-hectare artificial island that is adjacent to the Galle Face Green in the city of Colombo.

More specifically, the purpose of the project is to develop an underground tunnel and access road to the Colombo Port City from Chaithya Mawatha, which connects to Marine Drive. Upon completion, the project is expected to ease congestion in Colombo.

As Sri Lanka defaulted on USD 51 billion foreign debt with most of its forex reserves drained out with no money to import fuel and cooking gas, the expansive Chinese-built infrastructure projects were being showcased as projects that drained the public exchequer due to their lack of utility.

To attract more investments from the international community, Sri Lankan Government provided tax breaks for the Project for 40-years. The project's new expected completion date is April 2024.