https://www.scmp.com/rss/318728/feed China has ploughed huge sums into Sri Lankan infrastructure projects, becoming the country's biggest foreign financier and enjoying significant political and even military influence. China's growing influence over recent years has also been a source of disquiet in regional rival India, which has long regarded the neighbouring island as within its natural sphere of influence. But when Sri Lankan voters unexpectedly turfed out President Mahinda Rajapaksa in an election in January 2015, it was a... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Biman Mukherji Biman Mukherji Sri Lanka’s loss-making Mattala Rajapaksa International Airport will need a complete overhaul if it wants to attract investors, analysts warn, after a 30-year lease agreement with an Indo-Russian joint venture failed commercially. The nation’s second international airport, built with Chinese loan, is located near a wildlife sanctuary on the island’s southern coast. It has no regular flights. Since opening in 2013, the small airport has failed to generate enough revenue to cover even its... https://www.scmp.com/week-asia/economics/article/3351962/sri-lankas-investor-call-worlds-emptiest-airport-struggling-get-ground?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3351962/sri-lankas-investor-call-worlds-emptiest-airport-struggling-get-ground?utm_source=rss_feed Thu, 30 Apr 2026 06:03:44 +0000 Dimuthu Attanayake Dimuthu Attanayake A long-delayed free-trade agreement (FTA) between Sri Lanka and China appears to be back on the agenda, even as analysts warn that the crisis-hit South Asian nation is not expected to benefit much from it for years after its implementation. Sri Lanka’s officials are cautiously optimistic the FTA could help narrow the country’s huge trade deficit with China. First proposed in 2014, talks between both sides for an FTA have been on hold after 2018 because Sri Lanka did not agree to some of the... https://www.scmp.com/week-asia/economics/article/3313264/will-sri-lanka-and-china-push-fta-or-just-engage-economic-diplomacy?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3313264/will-sri-lanka-and-china-push-fta-or-just-engage-economic-diplomacy?utm_source=rss_feed Fri, 06 Jun 2025 04:00:09 +0000 The visit by Indian Prime Minister Narendra Modi to Sri Lanka is seen as another step by New Delhi to counter China’s rising influence and presence on the island nation, with observers citing a landmark defence pact to be signed by the South Asian neighbours. New Delhi and Colombo will finalise key agreements such as the set-up of solar-power plants during Modi’s trip over the weekend, following up on talks that began when Sri Lankan President Anura Kumara Dissanayake visited India in... https://www.scmp.com/week-asia/politics/article/3304934/india-and-sri-lanka-set-sign-defence-pact-amid-chinas-rising-regional-clout?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3304934/india-and-sri-lanka-set-sign-defence-pact-amid-chinas-rising-regional-clout?utm_source=rss_feed Thu, 03 Apr 2025 00:00:07 +0000 China’s record US$3.7 billion investment in a Sri Lankan oil refinery has sparked fresh security concerns in India, analysts say, as New Delhi sees the growing Chinese presence near its borders as a strategic threat. During Sri Lankan President Anura Kumara Dissanayake’s visit to Beijing last week, where he held talks with his Chinese counterpart Xi Jinping, both sides signed the refinery deal – which Colombo has described as its biggest-ever foreign investment agreement – alongside 15 other... https://www.scmp.com/week-asia/politics/article/3295521/unwelcome-news-should-india-be-worried-about-sri-lanka-and-chinas-growing-cooperation?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3295521/unwelcome-news-should-india-be-worried-about-sri-lanka-and-chinas-growing-cooperation?utm_source=rss_feed Mon, 20 Jan 2025 11:30:08 +0000 Sri Lanka is reversing a year-long ban on foreign research vessels in its waters, opting instead to draft new protocols that aim to balance India’s security concerns with China’s growing presence in the Indian Ocean. The moratorium, which expired on December 31, was introduced in late 2023 after New Delhi raised alarms about the Chinese research vessel Shi Yan 6 that conducted a joint maritime survey with Sri Lanka’s maritime agency. While the ban temporarily eased tensions with India, Colombo’s... https://www.scmp.com/week-asia/politics/article/3293877/eyes-china-and-india-sri-lanka-lifts-ban-foreign-research-vessels?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3293877/eyes-china-and-india-sri-lanka-lifts-ban-foreign-research-vessels?utm_source=rss_feed Wed, 08 Jan 2025 07:12:24 +0000 The visit by Sri Lankan President Anura Kumara Dissanayake to India on his first overseas trip is seen by analysts as his commitment to deepen New Delhi’s economic support for debt-stricken Colombo and allay any concerns over China’s influence in the South Asian island nation. Dissanayake, who took office in September, met Indian Prime Minister Narendra Modi on Monday and both leaders agreed to increase economic cooperation. Among their proposed measures, India, Sri Lanka and the United Arab... https://www.scmp.com/week-asia/politics/article/3291182/sri-lankas-dissanayake-chooses-india-his-first-overseas-trip-china-factor?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3291182/sri-lankas-dissanayake-chooses-india-his-first-overseas-trip-china-factor?utm_source=rss_feed Tue, 17 Dec 2024 09:00:09 +0000 The decisive victory of President Anura Kumara Dissanayake’s National People’s Power (NPP) alliance in the November 14 parliamentary election is expected to usher in a new era of clean government and socioeconomic empowerment for the Sri Lankan people. However, much depends on whether the two Asian powers, India and China, and a global power, the United States, can act as partners in helping the Sri Lankan government implement its ambitious reforms. After Dissanayake narrowly won the... https://www.scmp.com/opinion/asia-opinion/article/3287157/sri-lanka-china-and-india-have-chance-join-hands?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3287157/sri-lanka-china-and-india-have-chance-join-hands?utm_source=rss_feed Tue, 19 Nov 2024 21:30:08 +0000 Police in Sri Lanka have arrested more than 230 Chinese men accused of targeting international banks in online scams, the foreign minister said, with help from security officials sent by Beijing. Vijitha Herath said police raids over the past week had also seized 250 computers and 500 mobile phones used in the alleged scams, with investigations into how much had been stolen still under way. “They have mainly targeted foreign banks and financial institutions,” Herath said on Tuesday of the gangs... https://www.scmp.com/news/asia/south-asia/article/3282534/hundreds-chinese-men-arrested-sri-lanka-over-online-scams?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3282534/hundreds-chinese-men-arrested-sri-lanka-over-online-scams?utm_source=rss_feed Wed, 16 Oct 2024 03:10:32 +0000 India has Sri Lanka’s ear on security matters, observers say – citing Colombo’s appreciation for its neighbour’s help during its recent economic crisis – even as the South Asian island nation’s new president strives to balance ties with New Delhi and Beijing. Sri Lanka elected Marxist lawmaker Anura Kumara Dissanayake as president on last month, marking a decisive shift away from the old political elite that many blamed for the country’s economic collapse. Dissanayake triumphed over opposition... https://www.scmp.com/week-asia/politics/article/3280672/india-gains-advantage-over-china-sri-lankas-new-leader-seeks-balance-ties?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3280672/india-gains-advantage-over-china-sri-lankas-new-leader-seeks-balance-ties?utm_source=rss_feed Wed, 02 Oct 2024 06:00:12 +0000 Sri Lanka’s left-leaning president-elect Anura Kumara Dissanayake has yet to declare a precise China policy, but was expected to seek “maximum support” from Beijing through foreign direct investment, technology and tourism, according to analysts. On Monday, Chinese President Xi Jinping congratulated Dissanayake on his election victory on Saturday, hailing bilateral ties as “a good example of friendly coexistence and mutually beneficial cooperation between countries of different sizes” while... https://www.scmp.com/news/china/diplomacy/article/3279800/sri-lanka-seek-maximum-support-china-under-new-leader-dissanayake-analysts-say?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3279800/sri-lanka-seek-maximum-support-china-under-new-leader-dissanayake-analysts-say?utm_source=rss_feed Tue, 24 Sep 2024 14:00:08 +0000 The year of elections has claimed its first casualty. Bangladeshi Prime Minister Sheikh Hasina who was re-elected for her fourth consecutive term in January fled the country earlier this month after her position became untenable amid growing anti-government protests. The unrest that prompted Hasina’s departure related to the issue of public sector job quotas for families of war veterans. However, developments in Bangladesh can also be seen as a harbinger of broader trends in South Asia and the... https://www.scmp.com/opinion/asia-opinion/article/3274931/bangladesh-unrest-signals-troubling-headwinds-global-south?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3274931/bangladesh-unrest-signals-troubling-headwinds-global-south?utm_source=rss_feed Tue, 20 Aug 2024 21:30:09 +0000 As candidates in Sri Lanka prepare for next month’s pivotal presidential election, analysts warn its future relations with India and China will hinge on the winner’s policies. The race is on, with a diverse field of 39 candidates vying to lead the island nation out of its worst economic crisis in decades. It’s the country’s first presidential elections since the turmoil of 2022, which saw the once-dominant Rajapaksa political dynasty tumble from power amid mass protests and a crippling financial... https://www.scmp.com/week-asia/politics/article/3274831/china-or-india-sri-lankas-presidential-election-becomes-battleground-influence?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3274831/china-or-india-sri-lankas-presidential-election-becomes-battleground-influence?utm_source=rss_feed Mon, 19 Aug 2024 00:00:21 +0000 Dangerous squabbles in remote Himalayan borderlands between China and India may, at least for now, have been soothed by a recent meeting between the two nations’ top diplomats. But the Indian Ocean looms as the next potential flashpoint, security analysts say, as New Delhi flashes increasingly anxious eyes at Beijing’s ports and ship deployments across a vast expanse of water in India’s backyard – but crucial to China’s supply of oil. In July, on the sidelines of an Asean (Association of... https://www.scmp.com/week-asia/politics/article/3273020/china-india-ramp-naval-rivalry-indian-ocean-maritime-crossroads?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3273020/china-india-ramp-naval-rivalry-indian-ocean-maritime-crossroads?utm_source=rss_feed Sat, 03 Aug 2024 01:00:20 +0000 Eyeing a potential cobalt windfall on Sri Lanka’s sea floor, New Delhi is seeking to deepen ties with its island neighbour. Experts see the Indian foreign minister’s recent visit to Colombo and the emphasis on maritime support as a calculated play for dominance in the strategically vital Indian Ocean region. In late June, India’s External Affairs Minister S. Jaishankar chose Sri Lanka as the destination for his first bilateral trip since his party’s re-election. Much publicity was given to him... https://www.scmp.com/week-asia/economics/article/3269395/indias-neighbourhood-anxieties-fuel-pursuit-sri-lankas-untapped-seabed-cobalt?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3269395/indias-neighbourhood-anxieties-fuel-pursuit-sri-lankas-untapped-seabed-cobalt?utm_source=rss_feed Mon, 08 Jul 2024 00:00:14 +0000 Sri Lanka has finalised long-delayed debt deals with its bilateral lenders including China to meet a key condition of an IMF bailout, the government said on Tuesday. A treasury delegation is on its way to France to sign agreements with creditors on Wednesday, government spokesman Bandula Gunawardana said. Sri Lanka defaulted on its foreign debt in April 2022 after running out of foreign exchange, and the unprecedented economic crisis forced the then president Gotabaya Rajapaksa to step down. The... https://www.scmp.com/news/asia/south-asia/article/3268001/cash-strapped-sri-lanka-sign-debt-deals-china-other-lenders-meet-imf-bailout?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3268001/cash-strapped-sri-lanka-sign-debt-deals-china-other-lenders-meet-imf-bailout?utm_source=rss_feed Tue, 25 Jun 2024 12:00:16 +0000 India is set to wield greater influence in Sri Lanka as its companies flock to sign deals with the heavily indebted island nation in sectors ranging from energy to maritime logistics, even as some analysts question their commercial viability. Among the recent high-profile deals involving Indian companies was a 20-year power purchase agreement with Adani Green Energy, a subsidiary of India’s Adani Group, announced by Sri Lankan President Ranil Wickremesinghe earlier this month. Adani Green is... https://www.scmp.com/week-asia/economics/article/3263152/india-sees-chance-make-sri-lanka-virtual-province-amid-its-rivalry-china?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3263152/india-sees-chance-make-sri-lanka-virtual-province-amid-its-rivalry-china?utm_source=rss_feed Mon, 20 May 2024 04:00:35 +0000 When Sri Lanka announced in July 2017 that the underperforming Chinese-built Hambantota port was to be leased for 99 years to a Chinese government-linked company, Western and Indian media outlets went into overdrive by labelling the deal a classic example of Beijing’s “debt trap”. Washington was quick to spread the narrative, with members of the Trump administration pointing to Hambantota as a warning against China’s strategic use of debt. In 2018, then US vice-president Mike Pence called it... https://www.scmp.com/week-asia/economics/article/3261398/chinese-debt-trap-sri-lankas-hambantota-port-set-debunk-narrative-its-success?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3261398/chinese-debt-trap-sri-lankas-hambantota-port-set-debunk-narrative-its-success?utm_source=rss_feed Fri, 03 May 2024 13:45:16 +0000 Sri Lanka said on Friday it had leased a white elephant international airport built with Chinese loans to a foreign joint venture, as the island nation’s bankrupt government seeks to offload loss-making assets. The small airport near a wildlife sanctuary on the southern coast opened in 2013 but was immediately plagued by problems, and has been a running sore on state coffers since. Government spokesman Bandula Gunawardana told reporters that cabinet had awarded a 30-year lease to a joint venture... https://www.scmp.com/news/asia/south-asia/article/3260566/sri-lankas-chinese-financed-white-elephant-airport-leased-indian-russian-joint-venture?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3260566/sri-lankas-chinese-financed-white-elephant-airport-leased-indian-russian-joint-venture?utm_source=rss_feed Fri, 26 Apr 2024 12:17:59 +0000 Sri Lanka has limited options but to turn to China for help in financing massive infrastructural projects, but the move is not expected to become a debt trap for the island nor affect its relations with India and the United States. While Chinese investments in the past are said to have made Sri Lanka “fiscally more vulnerable”, forthcoming Chinese funds pouring into the island would not be debt-funded but likely be in the form of equity investment by Chinese enterprises, according to experts. On... https://www.scmp.com/week-asia/politics/article/3258227/sri-lanka-turns-china-more-investment-help-move-unlikely-strain-strong-ties-india-us?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3258227/sri-lanka-turns-china-more-investment-help-move-unlikely-strain-strong-ties-india-us?utm_source=rss_feed Mon, 08 Apr 2024 11:30:13 +0000 China has pledged to continue to support Sri Lanka’s debt restructuring, in a joint statement issued as Lankan Prime Minister Dinesh Gunawardena wrapped up a five-day visit to the country. China would support Sri Lanka’s negotiations with Chinese creditors, it said in the statement released on Friday, though it did not give further details. Beijing was willing to “continue supporting its financial institutions to actively negotiate with Sri Lanka, maintain friendly communication with other... https://www.scmp.com/news/china/diplomacy/article/3257328/china-underlines-support-sri-lankas-debt-restructuring-imf-push-prime-minister-gunawardena-wraps?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3257328/china-underlines-support-sri-lankas-debt-restructuring-imf-push-prime-minister-gunawardena-wraps?utm_source=rss_feed Sat, 30 Mar 2024 13:33:00 +0000 Sri Lanka’s prime minister said on Wednesday that China has pledged to develop the island nation’s strategic deep seaport and the capital’s airport after talks with his counterpart in Beijing. Prime Minister Dinesh Gunawardena said China – the island’s biggest bilateral creditor – would “assist” Sri Lanka’s restructuring of external debt, a key condition to maintaining a US$2.9 billion IMF bailout. Beijing’s position on debt restructuring has not been made public, but Sri Lankan officials have... https://www.scmp.com/news/asia/south-asia/article/3256962/sri-lanka-pm-says-china-develop-strategic-hambantota-port-colombo-airport?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3256962/sri-lanka-pm-says-china-develop-strategic-hambantota-port-colombo-airport?utm_source=rss_feed Wed, 27 Mar 2024 23:00:17 +0000 Former Sri Lankan president Gotabaya Rajapaksa ended a long silence over his ouster on Thursday by releasing a book claiming “geopolitical rivalry” between China and other countries was responsible for his downfall. Rajapaksa was forced into temporary exile after protesters stormed his official residence in 2022, following months of street protests over the island nation’s worst-ever economic crisis. In a self-published account of his downfall, The Conspiracy, Rajapaksa defends his government’s... https://www.scmp.com/news/asia/south-asia/article/3254528/sri-lankas-rajapaksa-says-chinese-investments-led-his-downfall-new-book-conspiracy?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3254528/sri-lankas-rajapaksa-says-chinese-investments-led-his-downfall-new-book-conspiracy?utm_source=rss_feed Thu, 07 Mar 2024 09:07:14 +0000 The ban on Chinese ships in Sri Lanka’s exclusive economic zone (EEZ) is seen as a “victory” for India in the Indian Ocean but also highlights the limits of small states “in manoeuvring between major powers”, analysts said. The one-year moratorium also points to China’s inability to leverage its investment in developing countries to serve its growing military ambition, experts added. On December 31, Sri Lanka said it had informed India that it would not allow any Chinese research vessels to dock... https://www.scmp.com/week-asia/politics/article/3248447/sri-lanka-ban-chinese-ships-victory-india-shows-limits-small-states-big-power-rivalry?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3248447/sri-lanka-ban-chinese-ships-victory-india-shows-limits-small-states-big-power-rivalry?utm_source=rss_feed Mon, 15 Jan 2024 10:30:15 +0000 A US-funded port project in Sri Lanka that is partly owned by a private group close to India’s ruling party could signal a new form of partnership to counter growing Chinese influence in the Indo-Pacific region. The Adani Group, controlled by Indian billionaire Gautam Adani and with businesses ranging from ports to edible oils, is developing the Colombo West International Terminal project in Sri Lanka’s capital and holds a 51 per cent stake in the project, backed by more than US$500 million in... https://www.scmp.com/week-asia/economics/article/3243542/china-rivalry-twist-emerges-sri-lankas-new-us-funded-indian-built-port?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3243542/china-rivalry-twist-emerges-sri-lankas-new-us-funded-indian-built-port?utm_source=rss_feed Mon, 04 Dec 2023 00:30:20 +0000 For years, several China-linked projects in Sri Lanka have come under fire for being “white elephants” that have failed to contribute significantly to its economy, but a free-trade agreement between both countries, policy revamp and more involvement by joint ventures could turn the tide, analysts say. Among the underperforming projects are the Mattala Rajapaksa International Airport (MRIA), built with US$191 million financing from the Exim Bank of China; Hambantota International Port (HIP) built... https://www.scmp.com/week-asia/economics/article/3241918/china-backed-white-elephant-projects-sri-lanka-dent-investor-confidence-amid-calls-policy-revamp?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3241918/china-backed-white-elephant-projects-sri-lanka-dent-investor-confidence-amid-calls-policy-revamp?utm_source=rss_feed Mon, 20 Nov 2023 00:30:27 +0000 The US will provide US$553 million in financing for a port terminal in Sri Lanka’s capital being developed by Indian billionaire Gautam Adani, as New Delhi and Washington look to curtail China’s influence in South Asia. The funding from International Development Finance Corp underscores renewed US and Indian efforts to loosen Beijing’s sway over Sri Lanka after Colombo borrowed heavily to splurge on Chinese port and highway projects before its economic meltdown last year. For Adani, US money may... https://www.scmp.com/news/asia/south-asia/article/3240928/us-invests-us553-million-gautam-adanis-sri-lanka-port-curb-chinas-influence?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3240928/us-invests-us553-million-gautam-adanis-sri-lanka-port-curb-chinas-influence?utm_source=rss_feed Thu, 09 Nov 2023 23:00:10 +0000 Chinese research ship Shi Yan 6 arrived in Sri Lanka on Wednesday, a year after a similar port call by a spacecraft-tracking vessel raised security concerns from neighbouring India. New Delhi is suspicious of China’s increasing presence in the Indian Ocean and its influence in Sri Lanka, which is strategically placed halfway along key east-west international shipping routes. The 90-metre (300-foot) vessel was seen entering the port of Colombo on Wednesday afternoon. A foreign ministry spokesman... https://www.scmp.com/news/asia/south-asia/article/3239172/chinese-research-ship-arrives-sri-lanka-year-after-similar-port-call-raised-concerns-india?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3239172/chinese-research-ship-arrives-sri-lanka-year-after-similar-port-call-raised-concerns-india?utm_source=rss_feed Wed, 25 Oct 2023 13:25:30 +0000 Sri Lankan President Ranil Wickremesinghe on Monday declared the Aukus security pact between Australia, Britain and the US “a mistake” while rejecting any concerns over Beijing’s perceived influence on his debt-ridden island nation. “It is a military alliance moved against one country – China,” he said at an event hosted by the Carnegie Endowment for International Peace in New York on the sidelines of the United Nations General Assembly. “I think it’s a strategic misstep. I think they made a... https://www.scmp.com/news/china/article/3235004/sidelines-un-general-assembly-sri-lankan-president-calls-aukus-mistake-and-rejects-fears-over-china?utm_source=rss_feed https://www.scmp.com/news/china/article/3235004/sidelines-un-general-assembly-sri-lankan-president-calls-aukus-mistake-and-rejects-fears-over-china?utm_source=rss_feed Tue, 19 Sep 2023 02:40:19 +0000 Sri Lanka’s police force said on Friday that it had sacked an officer who entertained protesters with an impromptu piano performance after they stormed the island nation’s presidential compound last year. Constable Dayaratne was deployed to help protect the colonial-era residence on the day it was taken over by protesters who forced then-president Gotabaya Rajapaksa to flee the country. Instead, he sat at a grand piano in the compound and played a song to the crowd streaming through its... https://www.scmp.com/news/asia/south-asia/article/3233126/sri-lanka-policeman-sacked-playing-piano-while-president-fled-he-was-our-nero-he-said-ex-leader?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3233126/sri-lanka-policeman-sacked-playing-piano-while-president-fled-he-was-our-nero-he-said-ex-leader?utm_source=rss_feed Fri, 01 Sep 2023 09:59:08 +0000 French President Emmanuel Macron made a brief but historic stopover in Sri Lanka last month, in a show of France’s desire to offer an “alternative” to the big-power tussle between China, India and the West for influence in the Indo-Pacific region. Macron’s visit comes as France and Sri Lanka mark 75 years of relations, and as both countries aim to boost cooperation in areas such as development aid, maritime security and trade. Analysts say their growing friendship is driven by mutual interests,... https://www.scmp.com/week-asia/politics/article/3232364/france-offers-third-way-sri-lanka-balances-china-india-ties-it-late-party?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3232364/france-offers-third-way-sri-lanka-balances-china-india-ties-it-late-party?utm_source=rss_feed Sun, 27 Aug 2023 03:30:21 +0000 China has requested permission for a research ship to dock in Sri Lanka, Colombo said Tuesday, following a visit by a spacecraft-tracking vessel last year that sparked security concerns from neighbouring India. Sri Lankan foreign ministry spokeswoman Priyanga Wickramasinghe said Beijing had sought permission for the Shi Yan 6 to dock, but that no date had been set and the request was being processed. Chinese state broadcaster CGTN calls the Shi Yan 6 a “scientific research vessel” crewed by 60... https://www.scmp.com/news/asia/south-asia/article/3231923/chinese-research-ship-shi-yan-6-requests-sri-lanka-port-call-raising-possible-security-concerns?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3231923/chinese-research-ship-shi-yan-6-requests-sri-lanka-port-call-raising-possible-security-concerns?utm_source=rss_feed Tue, 22 Aug 2023 09:44:57 +0000 Beijing’s top diplomat made a direct appeal to Vietnam’s shared ideology with China as he urged Hanoi to prepare for a summit and prevent “interference” by external forces. As neighbours with similar ideologies, “the two sides should prepare for the next stage of high-level exchanges”, Wang Yi told Vietnamese Deputy Prime Minister Tran Luu Quang on Wednesday. “[We should] jointly safeguard the security of the regime and institutions and jointly uphold the ideals and beliefs of the [Communist]... https://www.scmp.com/news/china/diplomacy/article/3231393/amid-south-china-sea-tension-beijings-top-diplomat-wang-yi-urges-vietnam-help-boost-trust-and-uphold?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3231393/amid-south-china-sea-tension-beijings-top-diplomat-wang-yi-urges-vietnam-help-boost-trust-and-uphold?utm_source=rss_feed Thu, 17 Aug 2023 08:00:16 +0000 Sri Lanka and India have cemented their long-standing ties with a rush of energy and maritime deals amid a push by New Delhi for more strategic influence in the region to counter China’s rising clout – even as analysts warn Colombo against becoming overreliant on its larger neighbour. Both South Asian nations agreed to boost maritime, air, energy and power cooperation, among other areas, during Sri Lankan President Ranil Wickremesinghe’s meeting with Indian Prime Minister Narendra Modi last... https://www.scmp.com/week-asia/politics/article/3229657/india-eyes-chinas-triangle-death-race-influence-sri-lanka-energy-maritime-deals?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3229657/india-eyes-chinas-triangle-death-race-influence-sri-lanka-energy-maritime-deals?utm_source=rss_feed Wed, 02 Aug 2023 01:30:14 +0000 Sri Lanka tops the list of nations that may host a Chinese naval base in the coming years as Beijing seeks to expand its maritime capabilities, according to a new report. The South Asian nation’s Hambantota port is the most likely spot for a base given the US$2.19 billion China has already invested there, according to an assessment by the AidData research project at William & Mary university in Virginia. Sites in Equatorial Guinea, Pakistan and Cameroon were listed as the next possibilities over... https://www.scmp.com/news/asia/south-asia/article/3229251/sri-lankas-hambantota-port-could-be-chinas-top-choice-next-naval-base-report?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3229251/sri-lankas-hambantota-port-could-be-chinas-top-choice-next-naval-base-report?utm_source=rss_feed Fri, 28 Jul 2023 08:01:16 +0000 China pledged to support Sri Lanka through “difficult times” while renewing its commitment to developing the island country’s largest trading ports through the Belt and Road Initiative as Colombo continues to battle a crippling economic crisis. In a meeting between visiting Chinese vice-minister for foreign affairs Sun Weidong and Sri Lankan Foreign Secretary Aruni Wijewardane, the two sides reaffirmed their commitment to the belt and road, China’s multibillion-dollar infrastructure connectivity... https://www.scmp.com/news/china/diplomacy/article/3222628/china-pledges-support-sri-lanka-through-difficult-times-renews-promise-develop-ports-through-belt?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3222628/china-pledges-support-sri-lanka-through-difficult-times-renews-promise-develop-ports-through-belt?utm_source=rss_feed Thu, 01 Jun 2023 12:00:19 +0000 Sri Lankan President Ranil Wickremesinghe ordered the early release of nearly 1,000 prisoners to mark the island’s main Buddhist holiday, the prisons chief said on Saturday. The pardons on Vesak Day, which commemorates the Buddha’s birth, enlightenment and death, applied only to those convicted of minor offences, said Commissioner-General Thushara Upuldeniya. “We released these inmates from 28 prisons across the country”, Upuldeniya said of the Friday evening releases. “There were 982 men and... https://www.scmp.com/news/asia/southeast-asia/article/3219635/sri-lanka-frees-thousand-prisoners-mark-buddhist-holiday?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3219635/sri-lanka-frees-thousand-prisoners-mark-buddhist-holiday?utm_source=rss_feed Sat, 06 May 2023 11:05:23 +0000 A Chinese state-owned firm said on Monday it planned to take its investment in Sri Lanka to US$2 billion by building a major logistics hub. Sri Lanka is looking to kick-start its economic recovery after defaulting on its foreign debt last year, when shortages of essentials such as food, fuel and medicines sparked widespread anti-government protests. The investment by the China Merchants Group (CMG) in a large logistics complex at Colombo Port, with an estimated construction cost of US$392... https://www.scmp.com/news/asia/south-asia/article/3219050/chinese-state-owned-firm-build-major-sri-lanka-port-complex?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3219050/chinese-state-owned-firm-build-major-sri-lanka-port-complex?utm_source=rss_feed Mon, 01 May 2023 13:35:33 +0000 The International Monetary Fund approved a US$3 billion loan to Sri Lanka a month ago as the first step in restructuring its debt. This is a significant victory for Sri Lanka’s President Ranil Wickremesinghe and could lead to a gradual stabilisation of the economy and the government’s turnaround from bankruptcy. After the “staff-level agreement” signed with the IMF six months ago, Sri Lanka’s debt restructuring has finally been approved by the IMF board. In this restructuring, China played a... https://www.scmp.com/comment/opinion/article/3218319/sri-lanka-debt-deal-shows-creditors-can-set-aside-geopolitical-rivalries-debt-distressed-nations?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3218319/sri-lanka-debt-deal-shows-creditors-can-set-aside-geopolitical-rivalries-debt-distressed-nations?utm_source=rss_feed Wed, 26 Apr 2023 13:30:19 +0000 Sri Lanka’s president urged lawmakers on Wednesday to approve a four-year International Monetary Fund programme to restructure the country’s US$17 billion in foreign debt. Parliament began a three-day debate on Wednesday about President Ranil Wickremesinghe’s proposal to accept the IMF programme. It will be followed by a vote. If approved, the plan would dictate how Sri Lanka’s crisis-stricken economy will be managed in the coming few years. A majority of lawmakers are expected to accept the... https://www.scmp.com/news/asia/southeast-asia/article/3218471/sri-lanka-seeks-us17-billion-debt-reduction-restructuring-president-urges-lawmakers-accept-imf?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3218471/sri-lanka-seeks-us17-billion-debt-reduction-restructuring-president-urges-lawmakers-accept-imf?utm_source=rss_feed Wed, 26 Apr 2023 12:26:17 +0000 The International Monetary Fund has approved a US$3 billion loan programme for Sri Lanka, a crucial step for the bankrupt nation to stabilise its economy and begin restructuring its debt. The lender’s executive board approved the 48-month programme in Washington on Monday, and said it will include an immediate disbursement of about US$333 million. “Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis,” the IMF said in a statement. “The economy is facing significant... https://www.scmp.com/news/asia/south-asia/article/3214228/sri-lanka-secures-us3-billion-imf-bailout-now-difficult-debt-talks?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3214228/sri-lanka-secures-us3-billion-imf-bailout-now-difficult-debt-talks?utm_source=rss_feed Tue, 21 Mar 2023 01:32:52 +0000 The long-awaited IMF financing will not “drastically change the trajectory of things” for Sri Lankans struggling with rising costs of living, but it could provide a much-needed confidence boost that the country’s economic recovery is on the right track, experts have said. The International Monetary Fund (IMF) is expected to give final approval later this month for its US$2.9 billion, four-year bailout package after Sri Lanka had secured financing assurances from China, India and all its major... https://www.scmp.com/week-asia/economics/article/3212877/imfs-us29-billion-bailout-endorsement-sri-lankas-economic-recovery-analysts?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3212877/imfs-us29-billion-bailout-endorsement-sri-lankas-economic-recovery-analysts?utm_source=rss_feed Thu, 09 Mar 2023 04:00:19 +0000 Sri Lanka remains in the throes of an economic crisis, but there are signs of a silver lining and a possibility the island-state may have put the worst behind it. Its Paris Club creditors have finally provided the financing assurances that bring Sri Lanka one step closer to obtaining funding approval from the executive board of the International Monetary Fund for a US$2.9 billion bailout. This comes after India also provided financing assurances to the IMF last month, while the Export-Import... https://www.scmp.com/comment/opinion/article/3210347/sri-lanka-may-be-turning-corner-imf-bailout-difficult-reforms-lie-ahead?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3210347/sri-lanka-may-be-turning-corner-imf-bailout-difficult-reforms-lie-ahead?utm_source=rss_feed Sun, 19 Feb 2023 12:30:16 +0000 World leaders from Canada to Zimbabwe extended Lunar New Year greetings to China when the Year of the Rabbit hopped into full swing in late January, in what has become a regular act of diplomatic courtesy that only began fairly recently. It is therefore hard not to ignore the geopolitical undertones that appear to underline these well wishes, especially as many were extended by countries that either have deep ties with China or are seeking to deepen relations with Beijing. Sri Lankan President... https://www.scmp.com/week-asia/opinion/article/3208874/lunar-new-year-greetings-china-countries-shows-its-growing-influence?utm_source=rss_feed https://www.scmp.com/week-asia/opinion/article/3208874/lunar-new-year-greetings-china-countries-shows-its-growing-influence?utm_source=rss_feed Fri, 03 Feb 2023 02:00:13 +0000 China has indicated that it is willing to support the debt recast plan for Sri Lanka, a move that will bring the nation closer to the US$2.9 billion loan from the International Monetary Fund (IMF). “We are on track for the requirements of the IMF,” Sri Lanka’s State Minister of Finance Shehan Semasinghe said in a telephone interview on Sunday. Sri Lanka will reach out to the Washington-based lender to affirm whether the assurances are enough to set in motion the bailout programme, he... https://www.scmp.com/news/asia/south-asia/article/3207721/sri-lanka-says-china-willing-back-debt-restructuring-plan?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3207721/sri-lanka-says-china-willing-back-debt-restructuring-plan?utm_source=rss_feed Sun, 22 Jan 2023 12:03:51 +0000 India’s foreign minister arrives in Colombo on Thursday following his country’s backing of Sri Lanka for a US$2.9 billion International Monetary Fund (IMF) loan, leaving China as the island’s last remaining major creditor which has yet to agree to the debt restructuring plan. India has told global lender IMF that it strongly supports Sri Lanka’s debt restructuring plan, with Colombo owing around US$1 billion to its nearest neighbour. But Sri Lanka requires the backing of both China and India –... https://www.scmp.com/news/asia/south-asia/article/3207412/india-foreign-minister-visits-sri-lanka-stronger-ties-china-focus?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3207412/india-foreign-minister-visits-sri-lanka-stronger-ties-china-focus?utm_source=rss_feed Thu, 19 Jan 2023 09:47:58 +0000 Sri Lanka’s debt negotiations with China and India “are successful”, according to President Ranil Wickremesinghe, bringing the bankrupt nation closer to clearing a major hurdle to unlock US$2.9 billion from the International Monetary Fund. The nation’s president, who doubles as finance minister, spoke before the parliament on Tuesday without providing details. Before that, a person with knowledge of the matter said that India late on Monday formally notified that it would support Sri Lanka’s... https://www.scmp.com/news/asia/south-asia/article/3207116/sri-lanka-nears-imf-bailout-china-india-back-debt-plan-says-wickremesinghe?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3207116/sri-lanka-nears-imf-bailout-china-india-back-debt-plan-says-wickremesinghe?utm_source=rss_feed Tue, 17 Jan 2023 09:22:18 +0000 Almost six months after Sri Lanka’s ex-leader Gotabaya Rajapaksa fled overseas after mass anti-government protests demanding his resignation, critics say reforms have yet to materialise amid concerns the powerful and wealthy family still controls the nation through someone many say is their proxy, President Ranil Wickremesinghe. Amid huge demonstrations, which erupted over economic mismanagement that drove the island to bankruptcy and left its citizens grappling with out-of-control living costs... https://www.scmp.com/week-asia/politics/article/3204879/sri-lankas-ranil-wickremesinghe-president-whos-charge-him-or-rajapaksas?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3204879/sri-lankas-ranil-wickremesinghe-president-whos-charge-him-or-rajapaksas?utm_source=rss_feed Thu, 29 Dec 2022 04:00:21 +0000 When Sri Lanka slid into its worst economic crisis in seven decades leading to deadly riots and alarming shortages of fuel, food and medicines earlier this year, its giant northern neighbour stepped into the breach. India provided about US$4 billion in rapid assistance between January and July, including credit lines, a currency swap arrangement and deferred import payments, and sent a warship carrying essential drugs for the island’s 22 million people. Now, as Sri Lanka closes in on a US$2.9... https://www.scmp.com/news/asia/south-asia/article/3204772/india-spies-china-shaped-hole-fill-sri-lankas-economic-crisis?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3204772/india-spies-china-shaped-hole-fill-sri-lankas-economic-crisis?utm_source=rss_feed Wed, 28 Dec 2022 05:28:26 +0000 Bankrupt Sri Lanka’s 22 million people, already battling rampant food inflation and severe fuel and medicine shortages, are set for yet more misery as progress falters on a US$2.9 billion International Monetary Fund bailout. Colombo reached an agreement with the IMF in September, subject to conditions such as tax reforms and changes to the way electricity is priced, to inject life back into an economy suffering its worst-ever crisis since independence and reeling from this year’s historic... https://www.scmp.com/week-asia/economics/article/3204148/struggling-sri-lanka-waits-china-unlock-its-us29-billion-imf-bailout?utm_source=rss_feed https://www.scmp.com/week-asia/economics/article/3204148/struggling-sri-lanka-waits-china-unlock-its-us29-billion-imf-bailout?utm_source=rss_feed Fri, 23 Dec 2022 09:30:16 +0000 President Xi Jinping was right when he said at the opening of the 20th Communist Party Congress that “China’s international influence, appeal and power to shape the world has significantly increased”. But is this “influence” and “power” necessarily for the better? Especially when the “influence” lacks transparency? In Cambodia, Chinese influence and investments have contributed to the Southeast Asian nation’s development but have also led to a massive influx of Chinese tourists and businessmen,... https://www.scmp.com/week-asia/opinion/article/3196664/xi-jinping-says-china-has-power-and-influence-shape-world-what-cost?utm_source=rss_feed https://www.scmp.com/week-asia/opinion/article/3196664/xi-jinping-says-china-has-power-and-influence-shape-world-what-cost?utm_source=rss_feed Sat, 22 Oct 2022 00:00:09 +0000