COLOMBO — Sri Lanka's Cabinet said on Thursday it would allow a $1.5 billion “port city” deal with China to go ahead, dropping a threat to cancel a project approved by the previous government. Cabinet spokesman Rajitha Senaratne said President Maithripala Sirisena would, however, discuss arrangements over the freehold of land to be used when he visits China in March. Sri Lanka's neighbor India has raised concern over security threats posed by Chinese ownership of the freehold of 20 hectares of land next to the main commercial port in Colombo. India uses Colombo as a transshipment port. Sri Lanka's new prime minister, Ranil Wickremesinghe, said before last month's presidential vote he would cancel the deal if his party came to power because no environmental impact assessment (EIA) or feasibility study had been presented to parliament. – Reuters
