Sri Lanka cabinet suspends Chinese project on approval issue


COLOMBO (Reuters) - Sri Lanka suspended a $1.5-billion (985 million pounds) Chinese luxury real estate project in Colombo on Thursday until it obtains required government approvals, a move that risks a diplomatic row with its biggest foreign investor.

The new government, elected in January promising to end the corruption it said was rife in the country, decided at a cabinet meeting to suspend the project critics have called a sweetheart deal between China and the previous administration.

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