COLOMBO, March 10 -- The Sri Lankan government on Tuesday said that it will continue with the development projects initiated by the former government although some had to be reviewed.

Media Minister Gayantha Karunathillaka told journalists in capital Colombo that some of the companies had agreed to do the projects at a lower cost as there was a lot of red tape in the previous Mahinda Rajapakse government.

"Claims that the new government is attempting to stop the development projects initiated by the government of former President Mahinda Rajapaksa is completely false. However, there is a need to review some of the projects owing to concerns raised over them," the Minister said.

He said that the company which had signed the deal with former government for the Colombo-Jaffna highway had agreed to go ahead with the project for a lower cost with the new government.

"The question arises as to who was pocketing the extra money when the deals were signed for a higher cost," Karunathilleke said.

The minister's comments came a week after the government temporarily suspended a China-funded Port City project in the capital Colombo, giving time to the company to hand over relevant permits and approvals issued by the relevant authorities.

The company, while respecting the government's decision, has maintained that it had obtained all the necessary approvals and permits before initiating the project in September last year.