COLOMBO – China has approved a $1 billion loan to revive a long-delayedexpressway in central Sri Lanka, the island’s government said Monday.

Construction of the first phase of the road linking the capital Colombowith the hill resort of Kandy had been delayed for more than two years dueto a lack of foreign funding, according to local media reports.

Prime Minister Ranil Wickremesinghe’s office said he met the Chineseambassador on Monday, who told him Beijing had decided to approve the loanthat will be provided through the Export-Import Bank of China.

China has emerged as the largest single lender to Sri Lanka in recentyears, securing contracts to build roads, railways and ports under theformer government of Mahinda Rajapakse.

After Wickremesinghe came to power in January 2015, many projects weresuspended pending investigations into corruption allegations, butconstruction work has recently restarted following renegotiations.

Last August, China took over a loss-making deep-sea port in the island’ssouth on a 99-year lease under a $1.1 billion deal.

Colombo is a key hub for Indian cargo, and Beijing has been seeking todevelop facilities around the Indian Ocean to counter the rise of its rivaland secure its own economic interests. China’s strong presence in India’sbackyard has unnerved India.

Under Sri Lanka’s former regime, China began a $1.4 billion landreclamation project next to Colombo’s harbour.

There are plans to build a new city centre on the land, with Chinese firmsset to invest another billion to construct three 60-storey buildings.

The project was formally launched after a visit to Colombo by ChinesePresident Xi Jinping in 2014 but work was suspended by the newadministration.

It resumed after the state-owned China Communications Construction Companyentered into a fresh agreement with the new regime in August 2016 –despite concerns from India.

The 269-hectare (665-acre) reclamation is due to be completed next year.