China to Invest $1 Billion in Sri Lanka

New Year brings China close to Colombo. Xi Jinping visited Lanka in 2014 when the building project was launched. But right after, Sirisena took power, the government went slow on this. India had sensed relief but it seems now it was short-termed.

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Chinese Company Invest More Than $1 Billion In Lanka Development
Chinese Company Invest More Than $1 Billion In Lanka Development
SensageOnline

As Nepal is set to welcome a China-leaning Prime Minister in KP Oli, China announced that it will invest $1 billion in the construction of three 60-storey buildings near Sri Lanka’s main port, Sri Lanka said on Tuesday. This move is seen by experts as something which Beijing is long aiming to accomplish ~ dominance in the Indian ocean region.

Late last year, Sri Lanka gifted China with a 99-year-lease of the much spoken about Hambantota airport. India has strong doubts about the real intentions Beijing eyes over managing the airport. The port-deal follows an earlier Chinese investment of $1.4 billion to carry out reclamation work for a city development around Colombothe wider Colombo.

Sri Lanka is hoping the port investment would transform the region into a big financial centre like Hong Kong or Shanghai, or Amsterdam in Europe. Generating jobs and strengthening the economy are big challenges for the Maithripala Sirisena government. The Chinese company has said it expects the project to create 83,000 new jobs and help Sri Lanka attract another $13 billion in direct foreign investment. This clearly falls in Colombo’s interest and this seems to led the deal’s materialization.

Sirisena took over the war-ravaged country after former President Mahindra Rajapakse was forced to quit. Rajapakse had faced graft allegations on developing Hamabantota port. Popularly known as the “Helping Hambantota” case, he was accused of appropriating close to USD 830,000 into a Treasury approved private fund.

No completion date was given for the construction of the proposed buildings. Sri Lanka’s Urban Development Minister Champika Ranawaka said, “China Harbour (company) will put in $1 billion to build three buildings.”

Colombo port is a key hub of Indian trade exchange in South Asia. Therefore Beijing’s increasing clout on the island-nation is worrisome for New Delhi. Beijing has for long conspired to develop infrastructure around India in smaller nations on the disguise of actually securing its own economic interests and contain India’s growth. This policy of theirs is known as “string of pearls” mechanism to counter India’s rise and be sure of own supremacy.

Xi Jinping visited Lanka in 2014 when the building project was launched. But right after, Sirisena took power, the government went slow on this. India had sensed relief but it seems now it was short-termed.

The sudden push in restoration of the 2014 deal came after the state-owned China Communications Construction Company (CCCC) entered into a fresh agreement with the Sri Lankan government in August 2016, despite geopolitical concerns from locals and neighbour India.  To cool India, Colombo removed freehold rights granted to the Chinese company and offered the land on a 99-year lease instead. But that doesn’t change the picture much.

As Nepal is set to welcome a China-leaning Prime Minister in KP Oli, China announced that it will invest $1 billion in the construction of three 60-storey buildings near Sri Lanka’s main port, Sri Lanka said on Tuesday. This move is seen by experts as something which Beijing is long aiming to accomplish ~ dominance in the Indian ocean region.

Late last year, Sri Lanka gifted China with a 99-year-lease of the much spoken about Hambantota airport. India has strong doubts about the real intentions Beijing eyes over managing the airport. The port-deal follows an earlier Chinese investment of $1.4 billion to carry out reclamation work for a city development around Colombothe wider Colombo.

Sri Lanka is hoping the port investment would transform the region into a big financial centre like Hong Kong or Shanghai, or Amsterdam in Europe. Generating jobs and strengthening the economy are big challenges for the Maithripala Sirisena government. The Chinese company has said it expects the project to create 83,000 new jobs and help Sri Lanka attract another $13 billion in direct foreign investment. This clearly falls in Colombo’s interest and this seems to led the deal’s materialization.

Sirisena took over the war-ravaged country after former President Mahindra Rajapakse was forced to quit. Rajapakse had faced graft allegations on developing Hamabantota port. Popularly known as the “Helping Hambantota” case, he was accused of appropriating close to USD 830,000 into a Treasury approved private fund.

No completion date was given for the construction of the proposed buildings. Sri Lanka’s Urban Development Minister Champika Ranawaka said, “China Harbour (company) will put in $1 billion to build three buildings.”

Colombo port is a key hub of Indian trade exchange in South Asia. Therefore Beijing’s increasing clout on the island-nation is worrisome for New Delhi. Beijing has for long conspired to develop infrastructure around India in smaller nations on the disguise of actually securing its own economic interests and contain India’s growth. This policy of theirs is known as “string of pearls” mechanism to counter India’s rise and be sure of own supremacy.

The Forgotten Refugees of Sri Lanka

Xi Jinping visited Lanka in 2014 when the building project was launched. But right after, Sirisena took power, the government went slow on this. India had sensed relief but it seems now it was short-termed.

The sudden push in restoration of the 2014 deal came after the state-owned China Communications Construction Company (CCCC) entered into a fresh agreement with the Sri Lankan government in August 2016, despite geopolitical concerns from locals and neighbour India.  To cool India, Colombo removed freehold rights granted to the Chinese company and offered the land on a 99-year lease instead. But that doesn’t change the picture much.