(Yicai Global) Jan. 26 -- Sri Lanka has penned a USD1-billion investment deal with China Harbour Engineering Co. to build the first building complex in Colombo Port City.

The Chinese firm will build three 60-floor towers in the port city and start work on the first in June state-owned news agency Xinhua reported, citing Sri Lanka's Ministry of Megapolis and Western Development as saying at a press briefing yesterday.

"To facilitate the construction of the building complex, we have done a comprehensive environmental and social impact assessment, and a new piece of legislation for the Port City will be passed in Parliament by April or May," said Minister Champika Ranawaka. "The physical work of the building complex will commence in the mid of this year."

The port city project, in the center of Colombo's central business district, began in September 2004 as part of a 25-year plan. China Communications Construction Co. is developing the region in partnership with local port authorities. The pair hopes to make the Sri Lankan city a world-class Asian metropolis.

The Sri Lankan government also penned a deal with CHEC to build an undersea tunnel running adjacent to the city. The channel will connect the Colombo Highway Airport Expressway with the downtown promenade to ease traffic congestion.