COLOMBO, March 10-- The Sri Lankan cabinet has agreed to extend the agreement of a 1.4 billion dollars China-funded Port City Project in the capital for further six months, the government information department said here on Thursday.

The project funded by China Communication Construction Company Limited, began construction in September 2014, but it was suspended by the government in March last year over environmental issues. The government had called for the project to be reviewed.

The information department said that the Cabinet Committee on Economic Management had now suggested to allow the resumption of the project, subject to limitations and conditions stipulated in the Environment Impact Assessment report.

Accordingly, a proposal made by Prime Minister Ranil Wickremesinghe, to extend the project agreement for further six months from March 15, was approved by the Cabinet of Ministers, the information department said.