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Significance

Parliament passed a bill earlier in May authorising the president to form the commission after key amendments recommended by the Supreme Court were incorporated into the legislation. The Colombo Port City is a development that forms part of China’s Belt and Road Initiative.

Impacts

India will be wary of investing in the Colombo Port City.

Sri Lankan imports from China will increase, helped by a recently agreed bilateral currency swap.

The Rajapaksa government will remain popular with the country’s ethnic Sinhalese, Buddhist majority despite concerns about its China policy.

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