Topic
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 major setback for China, which has been accused of seeking to develop facilities around the Indian Ocean in a "string of pearls" strategy to counter the rise of India and secure its own economic interests.
- The Mattala airport is named after ex-president Mahinda Rajapaksa, who borrowed heavily from China for infrastructure projects that became commercial failures
- Since receiving an International Monetary Fund bailout last year, Sri Lanka has sought to privatise a host of loss-making state-owned enterprises
China has pledged to develop the Colombo International Airport and Hambantota port, and play a ‘positive role’ in Sri Lanka’s debt restructuring.
Pledge comes in joint statement issued as Lankan Prime Minister Dinesh Gunawardena wraps up five-day visit to China, where debt restructuring was top of the agenda.
Prime Minister Dinesh Gunawardena said Premier Li Qiang had promised Beijing would also help the South Asian nation’s debt restructuring process continuously.
In a self-published account of his downfall, former president Gotabaya Rajapaksa said “Chinese funded infrastructure projects brought in an element of geopolitical rivalry” that precipitated his overthrow.
The one-year ban on Chinese research ships shows Colombo ‘did not wish to trigger any tensions’ with its neighbour, given India’s economic and military capabilities in the region.
Analysts say the container port terminal being built in Colombo by India’s Adani Group hints at a new type of public-private partnership under the Quad grouping’s infrastructure push.
Economists say the projects could be thrown a lifeline through a China-Sri Lanka free trade agreement and joint ventures.
The deepwater West Container Terminal in Colombo is the US government agency’s largest infrastructure investment in Asia, and among its biggest globally.
Last year, India expressed concerns over a similar port call by a Chinese research vessel, which New Delhi described as a spy ship.
On sidelines of UN General Assembly, President Ranil Wickremesinghe countered recent claims by New Delhi that Beijing was sending ships to Sri Lanka to spy on India.
Constable Dayaratne was sent to protect the presidential residence the day it was stormed by protesters who forced Gotabaya Rajapaksa to flee the country. Instead he played songs a grand piano in the building.
France is looking to bolster its ties with Sri Lanka and believes it can be ‘a balancing power’ in the Indo-Pacific, analysts say.
Last year, India raised concerns over a Sri Lanka port call in Hambantota by Chinese research vessel Yuan Wang 5, which specialises in spacecraft tracking and which New Delhi described as a spy ship.
China’s foreign minister calls on Vietnamese Deputy Prime Minister Tran Luu Quang to contribute to keeping peace and stability in the region.
India’s rush of energy and maritime deals with Sri Lanka are part of a strategy to boost its presence as the ‘strongest player’ in the South Asia region, analysts say.
According to the US-based AidData research project, the port is the most likely spot for a base given the US$2.19 billion Beijing has already invested there.
Chinese vice-minister and Sri Lankan foreign secretary reaffirm commitment to Beijing’s multibillion-dollar infrastructure plan as South Asian country battles economic crisis.
The pardons on Vesak day, which commemorates the Buddha’s birth, enlightenment and death, apply only to those convicted of minor offences.
The project, described as South Asia’s largest logistics hub, will take China Merchants Group’s investment in Sri Lanka to US$2 billion.
Parliament is having a 3-day debate on IMF debt restructuring programme. If approved, the plan would dictate how Sri Lanka’s crisis-stricken economy will be managed in the coming years.
Debt-relief talks for other vulnerable nations have stalled recently, with the main sticking point being a disagreement between China and traditional lenders led by the US.
Sri Lanka has been waiting since September for the IMF loan, which would give it foreign exchange funds to purchase sorely-needed goods and ease inflation.
Sri Lanka is ‘on track’ to meet IMF requirements, will reach out to lender to affirm whether assurances are enough to set in motion the bailout programme
Sri Lanka requires the backing of both China and India – its biggest bilateral lenders – to reach an agreement with the IMF on a loan that is essential to help the country emerge from its worst financial crisis in seven decades.
Bankrupt island nation needs massive injection of International Monetary Fund cash as it continues to battle economic crisis, but needs assurances from other countries before loan programme can be agreed.
