Skip to content
Search

Latest Stories

Chinese government-backed firm bags Sri Lanka's highway contract

Chinese government-backed firm bags Sri Lanka's highway contract

A STATE-BACKED Chinese firm has become the first foreign owner of a Sri Lankan highway, a boost for Beijing as it battles other regional powers for influence in the island nation.

The cabinet on Monday awarded China Harbour Engineering Company (CHEC) a contract to build a 17-kilometre (10.5-mile), four-lane highway in the capital Colombo.


CHEC was expected to finish construction in three years and run the highway for 15 years before transferring the ownership back to Sri Lanka, cabinet spokesman and energy minister Udaya Gammanpila said Tuesday (25).

Officials involved in feasibility studies on the project said it could cost up to $1 billion (£710 million) to build the road.

The decision came a week after the government conferred tax-free status to the Chinese-built ‘Colombo Port City’, the single largest foreign investment in Sri Lanka.

Sri Lanka's main opposition party SJB said the highway project could worsen the battle for influence between Beijing and regional powers such as India and Japan.

"Starting with the ports, China's influence now moves inland," SJB legislator Harsha de Silva said.

"From a geopolitical perspective, this shows Sri Lanka is moving to one side and that is being pro-China," he said.

Sri Lanka last year scrapped a $1.5b (£1b), Japanese-funded light rail project, saying it was not a "cost-effective solution" for congested Colombo.

In March, the government offered a strategically located deep-sea port to India and Japan, a month after abruptly pulling out of an earlier agreement with New Delhi and Tokyo to jointly develop another terminal next to a Chinese-run container jetty.

In December 2017, unable to repay a huge Chinese loan, Sri Lanka allowed China Merchants Port Holdings to take over the southern Hambantota port, which straddles the world's busiest east-west shipping route.

The deal, which gave the Chinese company a 99-year lease, raised fears about Beijing's use of "debt traps" to exert influence abroad.

India and the United States have also expressed concerns that a Chinese foothold at Hambantota could give Beijing a military advantage in the Indian Ocean.

More For You

‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less