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The contract awarded to a Chinese firm for three power projects in Sri Lanka has raised concerns, as the country backed out of an agreement to award a 49 percent stake of the Colombo Port’s East Container Terminal to India’s Adani Group.

While the debate on the East Container Terminal of the Colombo port continues, the awarding of a contract to install a Hybrid Renewable Energy System on three Islands in the Jaffna peninsula located 50kms from India, to a Chinese Company had given rise to concerns in India.

Recently India lodged a strong protest with Sri Lanka on the award of this tender to a Chinese company, for the construction of renewable energy power plants on the Delft, Nagadeepa and Analthivu islands.

“The project is a commercial activity in accordance with the international bidding model,” a spokesperson for the Chinese Embassy in Sri Lanka told News1st.

The spokesperson pointed out that the Chinese company involved in the project is a private firm and that the embassy is unaware of the “specifics of the contract”.

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