Colombo Port City
Source : The Hindu
GS II : Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora

Why in News?

Sri Lanka’s Parliament passed a law installing a powerful economic commission to administer a huge Chinese luxury oceanside development after altering elements of the bill ruled unconstitutional by the country’s top court.

Key Facts

• The bill to create the Colombo Port City Economic Commission passed in Sri Lanka’s Parliament.
• This is a part of Chinese project and part of President Xi Jinping’s Belt and Road Initiative.
• Court found parts of the bill inconsistent with the constitution.
  • The amended version gives real power to regulators.
• The government now has two options to either stick with the current version or to amend the proposal.
  • The bill would need a nationwide referendum to pass.
  • They could simply bring it in line with the constitution.
• This bill gives government the authority to put foreigners on the board effectively handing over power to Chinese officials.

Impact over Srilanka

• It wants an overseas province. 
• Sri Lanka lost the Hambantota port after signing massive deals with the Chinese.
• China has already pumped millions into the project.
  • That debt has deepened Sri Lanka’s debt burden.
  • They reclaimed the land and built the high-rises.
• Sri Lanka’s government sees the project as a lifeline for an economy hit hard by the coronavirus pandemic.

Colombo Port City

• Colombo port city is a special financial zone being built next to Colombo, mostly on land reclaimed from the sea.
• Powered by renewable energy, the city will have a financial centre, an international island, and a sprawling park right in the middle.

Impact over India

• The project has raised concerns in Sri Lanka and neighboring India that the development could become a  virtual Chinese outpost or colony.
• Building of the Maritime Silk Route and the Belt and Road Initiative have been dream projects for China,India already raised concerns.

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