Sri Lanka’s port deal with China increases concerns in US and India
By
Vijith Samarasinghe
30 August 2017
The Sri Lankan government is anxiously trying to appease concerns in Washington and New Delhi that it is accommodating to the interests of Beijing by handing control over a strategic port to a Chinese company.
Sri Lanka last month signed a $US1.12 billion agreement to give the majority stake of the Chinese-built Hambantota port in the island’s south to Beijing’s state-owned China Merchant Port Holdings (CMPH) on a 99-year lease.
Two weeks later, on August 14, Forbes reported that Aviation and Transport Minister Nimal Siripala de Silva approved New Delhi’s application to buy a 70-percent share of the Mattala Rajapakse International Air Port (MRIA) on a 40-year lease for $205 million.
India’s MRIA bid was reported in the international press as a move to counter China. According to media reports, the Indian proposal has been sent to the cabinet for review. The airport is located in the Hambantota district, 250 kilometres from Colombo.
India considers Sri Lanka part of its sphere of influence and fears that China is trying to acquire a strategic foothold in the island. The port deal signed on July 29 was part of a privatisation program by the Colombo government and an attempt to offset debts of $8 billion due to China.
The construction of the $1.3 billion Hambantota harbour was completed under former President Mahinda Rajapakse’s government in 2011, at the same time as the nearby MRIA was built. Washington and New Delhi saw the project as a step by Rajapakse towards Beijing.
As part of its drive for global hegemony, the US has been pursuing a military and strategic buildup against China and wants Sri Lanka, located at the centre of the Indian Ocean, in its…