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COLOMBO, Feb. 5-- Sri Lanka's government on Thursday approved a 1.4 billion U.S. dollar port city project earmarked as the largest Chinese investment project in the country to date, an official said.

Cabinet spokesman and Health Minister Dr. Rajitha Senarathne told reporters that the project, which was being reassessed for its environmental feasibility by the new government, had received approval. "We are satisfied with the environmental feasibility study done by a local university. We may require a second feasibility for the second phase of construction but there is more time to get that done. So Cabinet has approved the project to continue,"he said.

The project was initiated by former President Mahinda Rajapaksa who was ousted from power early last month.

The new government had insisted it wanted to re-evaluate the project over environmental fears.