United National Party (UNP) parliamentarian and well-known economist Harsha de Silva today accused the government of having sold a sea area of 576 acres near the Colombo Port to Chinese Company, which was debarred by the World Bank for corrupt practices.

“The Government has sold 576 acres to a corrupt Chinese company -- China Communication Construction Company, which the World Bank has debarred for corrupt practices. According to the Cabinet Paper, this project is estimated to cost US$1,337 million with a perch costing only Rs.1.8 million after filling up the sea bed. The Cabinet Paper says the value of a perch is Rs.8 million. This will allow them to manipulate the price of land at their whim between Rs.1.8 million and Rs.8 million. This will result in land prices in Colombo facing a steep decline placing middle class asset holders in grave danger,” Dr. de Silva said.

He challenged any member of the Government to prove whether this Company had not been debarred by the World Bank.

Dr. de Silva said according to the gazette notification presented in Parliament, the Government had sold 20 hectares to this particular Chinese company on a freehold basis while another 88 hectares had been given on a 99-year lease.

When asked what action the UNP would take against this Company, he said it would handover this matter to its lawyers and would then decide on a future course of action.

Dr. de Silva said a future UNP Government would take steps to reverse the transactions which were detrimental to the country.

He revealed that it was this same Company which had been given the contract to construct the Hambantota Harbour including its second phase at a cost of US$810 million; the construction of the Mattala Airport at a cost of US$210 million and to enlarge its passenger terminal at a cost of US$100 million without calling for tenders.(Ajith Siriwardana)