After a year-long review, the agreements unfavourable to Sri Lanka have now been amended, and China has consented to the new terms, he has told BBC Sandeshaya.

One of them is to change the condition to handover of outright ownership of certain portions of land, to 99-year lease.

The western coast of the island will not be impacted by the project, he said.

Responding to reports by certain media, Perera said the government would not have to pay compensation for halting the project temporarily.

Any investor outside China can invest in the port city, he noted, adding the aim is to make it an economic hub in the Indian Ocean.

Warning by environmentalists

Meanwhile, environmentalists warn of strong action if the project is resumed.

Sajeeva Chamikara of the people’s movement against the port city said there was no legal basis for the resumption of the project, as the environmental impact assessement and several court cases were pending.

The project will have graver repercussions on the economy, country’s sovereignty and the public life, he said.

He said he was sorry that the president and the prime minister were disregarding the public opinion against the project.

Rajapaksa is glad

However, ex-president Mahinda Rajapaska says he is happy about the agreement with China.

He said he was glad that at least now, the government has understood the need to develop the country.