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China hopes for Sri Lanka co-operation

Beijing - China said on Monday it hoped for continued "co-operation" with Sri Lanka despite a pledge by the new government in Colombo to review Chinese infrastructure projects awarded under the previous administration.

The remarks by China's Foreign Ministry come two days after a junior Sri Lankan minister said President Maithripala Sirisena's government would look at benchmarks for Chinese infrastructure costs using independent audit firms.

That move is bound to please Indian and Western powers concerned about Beijing's access in the island state.

READ: Sri Lanka reviews China projects

Chinese Foreign Ministry spokesperson Hong Lei said co-operation between China and Sri Lanka was "based on mutual benefit and in the common interests" of the two sides.

"We hope and believe that the relevant co-operation between China and Sri Lanka can further press ahead with a healthy and stable development," Hong told reporters.

On Friday, Sri Lanka said it would review a $1.5bn port deal with China Communication Construction over concerns about the Chinese company getting land on a freehold basis in a high-security zone. That port project had been of particular concern for India, the destination for the majority of the transhipment cargo through Colombo.

Former President Mahinda Rajapaksa, who was unseated on January 8, heavily depended on China for infrastructure in the wake of a devastating civil war. He has borrowed over $6bn for mega projects since the end of a 26-year conflict in May 2009.

Opponents during the election campaign last month said many of the projects financed with Chinese loans were over-priced, an allegation that helped Sirisena to victory.

Harsha De Silva, deputy minister for Policy Planning and Economic Affairs, said on Saturday that China had already started to discuss the issues "at the highest level of the government" and the new government would work on a project by project basis.

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