Sri Lanka's new government said it would reconsider its decision to cancel a Chinese construction project on Thursday, stating that it may now "renegotiate" the deal with Chinese officials.
"We can renegotiate with China after reassessing the deal," Sri Lanka's Cabinet spokesperson Rajitha Senarathne was quoted as saying by Reuters.
"We need to see the feasibility study. We need to see the environmental impact assessment (EIA) and reassess the tax concessions given to it and land ownership issues," he reportedly added.
The $1.5 billion development project with a Chinese company was agreed during the former president, Mahinda Rajapaksa's term in office, however it appeared under threat following the recent election, after the new president, Maithripala Sirisena and prime minister, Ranil Wickremasinghe, said they would cancel the deal if elected.
The pledge to cancel the deal led to investor uncertainty, as doubts rose over the new government's economic policies.
Earlier this week, China's foreign minister spokesperson said his country had been assured that projects already agreed would go ahead.
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