In May, Sinohydro won a 122 million USD contract for the construction of the Kaluganga Dam in central Sri Lanka. The dam is expected to be operational by the end of 2018.
China has become Sri Lanka's biggest source of foreign direct investment, accounting for 24 percent of Sri Lanka's total FDI in 2013. China also provides development loans and aid for projects such as the country's first four-lane expressway, school buildings, water purification plants and reservoirs.
Like Sinohydro, other Chinese infrastructure and civil engineering companies, such as China Gezhouba Group Co Ltd, China Communications Construction Co, China State Construction Engineering Corp and China Road and Bridge Corp, have all been active players in Sri Lanka in the past five years.
Ranjith Uyangoda, Sri Lankan ambassador to China, said investments from China have played a key role in Sri Lanka's post-war reconstruction, contributing to foreign exchange reserves and job creation.
To ensure sustainable growth, the Sri Lanka government has entered into 27 investment protection agreements with foreign governments and is a founding member of the Multilateral Investment Guarantee Agency of the World Bank, according to the 2013 Investment Climate Statement-Sri Lanka issued by the US State Department.
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