While China’s Green Belt and Road has received considerable attention, the environmental impact of Chinese investment projects in Sri Lanka has been mixed. According to environmental advocates, early infrastructure projects, including the construction of Hambantota Port and Norochcholai Power Plant did not meet international environmental standards with respect to feasibility studies and domestic legislation processes. Similarly, some sources reported that construction of Colombo Port City (a commercial and residential project on reclaimed land near the Colombo port) resulted in a decrease of fish stocks, severely impacting the livelihoods of local fishermen.
Sri Lanka has comprehensive domestic environmental legislation, encompassing a wide range of regulations and standards. The detail and implementation of such legislation, however, is wanting. For example, although Environmental Impact Assessments (EIA) are legally required for development projects, the Colombo Port City appears to have been initiated without a comprehensive study and subsequent EIAs for the project were criticized for lacking specificity, transparency, and due consideration of project alternatives.
More recently, however, Chinese investments have shown positive environmental signs. Colombo Port City has committed to a long-term Sustainability Master Plan, setting standards and protection measures for pollution, waste control, and biodiversity. The Colombo International Container Terminal (CICT), a Chinese-built and operated terminal of the Colombo port, has prioritized green technology, becoming the first terminal of the port to convert its regular cranes to zero-emission electric cranes, minimizing air pollution and carbon emissions.The CICT terminal is the most profitable terminal of the Colombo port, demonstrating that Chinese investments can simultaneously pursue commercial success and environmental responsibility.
Two common perceptions about Chinese investment projects in Sri Lanka are that they rely on Chinese labor, displacing local workers, and that among this labor force there are many illegal migrants.
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