Opposition legislator Harsha de Silva alleged that China Communications Construction Company (CCCC) which had been given a deal to reclaim the sea near Colombo port had been blacklisted by the World Bank.
A World Bank statement in 2011 said it had debarred China Communications Construction Company from participating in its projects until 2017 following a corruption probe on a road project in the Philippines.
Under inter-agency agreements such companies are also barred from taking part in projects by other lenders including the Asian Development Bank.
Countries that are tackling corruption also refuse to deal with such firms.
The Tanzania Public Procurement Regulatory Authority (PPRA) had said the country would not deal with China Construction Communication Company for 10 years.
The World Bank itself had banned it for only 8 years.
"We never thought that the government has been dealing with the companies t