It is to be noted that several fishermen from Tamil Nadu were attacked by the Sri Lankan Navy and in 2021 alone five Indian fishermen from Tamil Nadu lost their lives in the sea….reports Asian Lite News
A Sri Lankan Naval boat rammed into Indian fishermen from Tamil Nadu damaging the boat that developed cracks and sank. Seven fishermen, who were on-board the sinking boat were rescued by other fishermen.
The incident occurred on Wednesday late at night.
The All Mechanised Boat Fishermen’s association president, P. Sesuraja while speaking to mediapersons said, “450 boats from Rameswaram area ventured into the sea after 4 p.m. on Wednesday. While they were fishing near Katchatheevu, a Sri Lankan Naval boat reached the spot and rammed it into a fishing boat creating a crack in the boat, and ultimately it sank in the waters.
“It’s a huge loss but fortunately, the fishermen raised a distress alarm, and those fishing nearby rescued them. While no lives were lost, this is a continuing phenomenon and we are driven to the wall. The State and Central governments have to take a call soon and diplomatic pressure should be mounted up on the Lankans against such incidents. We will have no other way but to enter into blockades to bring this issue to the national notice.”
Sesuraja also said that the livelihood of the fishermen from Tamil Nadu has been badly hit as most of the fishermen are venturing to the sea from Rameswaram and Ramanathapuram areas only twice a week and this has affected the financial situation and the livelihood.
It is to be noted that several fishermen from Tamil Nadu were attacked by the Sri Lankan Navy and in 2021 alone five Indian fishermen from Tamil Nadu lost their lives in the sea.
Around 55 Indian fishermen are still languishing in Sri Lankan jails after they were arrested by the Sri Lankan Navy on charges of crossing the International Marine Boundary Line (IMBL). While 68 were arrested in December 2021 in three separate incidents on alternate days, 13 were released on bail.
The Ministry of External Affairs (MEA) has already entered into diplomatic parleys with the Sri Lankan government, but the mounting issues created by the Sri Lankan Navy is making matters worse for the diplomats to solve the problem.
MP from Ramanathapuram constituency Nawas Kini has condemned the attack by the Sri Lankan Navy on the fishermen from Rameswaram.
The MP in a statement on Thursday said, “The inhumane attack by the Sri Lankan Navy against Tamil fishermen had been continuing. The Centre, which was giving economic assistance on humanitarian grounds to Sri Lanka, should advise the Government of the island nation to reciprocate the gesture in the same manner while dealing with fishermen from Tamil Nadu.”
Nawas Kini also called upon the Centre to register a strong protest before the Sri Lankan authorities against the recurring incidents of attacks on Tamil Nadu fishermen.
India’s critical support to Sri Lanka is due to the ongoing fuel crisis where the country is unable to purchase due to short of US dollars in the country…reports Asian Lite News
As Sri Lanka is facing a serious financial crisis, India has stepped up and pledged a whopping USD 2.415 billion to the island nation to help overcome dire financial constraints caused by external debt payments and a lack of US dollars in the country for business.
Earlier on Saturday, External Affairs Minister S Jaishankar held a virtual meeting with the Finance Minister of Sri Lanka Basil Rajapaksa. During the meeting, Jaishankar conveyed that India has always stood with Sri Lanka, and will continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by the COVID-19 pandemic.
To help Sri Lanka overcome its economic challenges, India under the SAARC currency swap arrangement has made an extension of USD 400 million to Sri Lanka and provided a deferral of ACU (Asian Clearing Union) settlement of USD 515.2 million by two months.
India’s critical support to Sri Lanka is due to the ongoing fuel crisis where the country is unable to purchase due to short of US dollars in the country, the Policy Research Group (PRG) said in its report.
It further stated that in 2022, Colombo must service over USD 7 billion in outstanding debt, including bond repayments of USD 500 million in January and USD 1 billion in July.
India has been keeping a close eye on China’s activities in Sri Lanka, said the report.
In the midst of deteriorating relations with India, Finance Minister Basil Rajapaksa’s visit to New Delhi has given the relationship a boost. The Trincomalee oil tanks, the West Container Terminal, and several renewable energy projects were all offered to India, Policy Research Group reported.
Highlighting the recent visit of Chinese Foreign Minister Wang Yi to the island nation, the PRG report said that though Wang Yi, who stated during his recent talks with Sri Lanka’s top officials that no ‘third country’ should ‘interfere’ in their close ties with Sri Lanka, India has demonstrated its ability to dissect and respond to the crisis.
To further complicate matters, the Chinese Ambassador in Colombo Qi Zhenhong remarked that Jaffna is a city in Sri Lanka in the north of the island and not a city in any other country’s south, subtly referring to India, Policy Research Group reported.
The Chinese Ambassador was in Jaffna after Colombo halted three hybrid projects aimed at offering to China. The offer was rolled back after India objected vehemently to China being in the north of Sri Lanka; the Chinese presence in close proximity means a security threat to India, the report said.
“China has been Sri Lanka’s largest lender for the past decade, playing a contentious role in the island’s major development projects. China wants to tighten its grip on Sri Lanka by seizing land when the country defaults on its loans, something no other country has done before.”
On their Belt and Road initiative, China has never fallen short to send its VIPs every other month to Sri Lanka to remind that its friendship with Sri Lanka is greater than any others, Policy Research Group’s report noted.
The visit by Wang Yi, who has come to Sri Lanka four times or so, was not a routine visit. The Sri Lankan President urged Yi for assistance to restructure the debt they own China. Sri Lanka owes China over USD 5 billion.
It is still unclear whether China will grant the debt restructuring that Sri Lanka has asked for. Yi said the two sides should return to the table on a free trade agreement and it is unclear whether this condition has something to do with the debt restructuring too, the report said.
It further reported that India, which believes in a “neighbourhood first” policy, has come out in force to support Sri Lanka, and the new assistance from India is aimed at preventing China from further destabilizing the country with debts. (ANI)
President Rajapaksa’s remarks came in the backdrop where opposition parties and critics have complained that government has been selling its lands and resources to powerful countries like China, India and the US…reports Asian Lite News
Sri Lankan President Gotabaya Rajapaksa said on Tuesday that his country does not want to get caught up between powerful nations.
He made the remarks while addressing the second session of the ninth Parliament, during which he also presented his government’s policy statement.
The session was attended by a large number of guests, including Ambassadors and High Commissioners.
“While giving priority to the country’s sovereignty and independence we are ready to response positively to the international observations. We are an independent and sovereign nation. We do not want to get caught up between the powerful nations,” President Rajapaksas said.
“While we respect our neighbours what we need is to maintain a friendly and cordial relationship with every nation.”
President Rajapaksa’s remarks came in the backdrop where opposition parties and critics have complained that amidst the ongoing financial crisis, his government has been selling its lands and resources to powerful countries like China, India and the US and making the island-nation a hunting ground for super powers.
During his hour-long speech, President Rajapaksa also invited the representatives of the minority Tamil and Muslim political parties from the North and the East to join him in promoting the lives of the people ravaged by three-decades long Civil War.
“I urge all the representatives from the North and the East to set aside their political ideologies temporarily and help the government’s efforts to promote lives of the people in the war affected areas.”
Rajapaksa also assured that he would release all the lands of the civilians taken over by the military in the North and the East.
“We released 90 per cent of the civilian land occupied by the military during the period when I was the Defence Secretary. Since there is peace, we would be able to release the rest of the civilian lands taken for military purposes in the area.”
Sri Lankan President Gotabaya Rajapaksa and Indian Prime Minister Narendra Modi
While ensuring justice for all the war-affected sections, Rajapaksa also said that the issue of disappearance during the war was not limited to one party.
“We condemn racism and we want to ensure the rights and respect of all parties… I urge this from all the politicians who continue to incite communal disharmony among different races and ethnic groups. We are ready to introduce timely changes to the Prevention of Terrorism Act which was introduced as far back as 1978.”
The President also said he had given Presidential pardon to a group of former LTTE members.
Rajapaksa further stressed that the people from the war battered North and East need economic security more than anything else and said that investments have been made to develop the peninsular predominantly occupied by the Tamils.
According to central bank data, Sri Lanka owed China $3.5 billion by the end of 2020, excluding loans to state-owned firms….reports Asian Lite News
China’s loans to Sri Lanka have been a contentious subject, with fears that the government would struggle to repay them and that Beijing would use them to challenge India and US influence in the Indo-Pacific region.
Debt-ridden Sri Lanka has approached China for assistance in restructuring loan repayments in order to save its faltering economy, reported The Singapore Post.
According to a statement from the President’s office, Sri Lankan President Gotabaya Rajapaksa told visiting Chinese Foreign Minister Wang Yi that “it would be a great relief to the country if attention could be paid to restructuring the debt repayments as a solution to the economic crisis that has arisen in the face of the COVID-19 pandemic.”
According to central bank data, Sri Lanka owed China $3.5 billion by the end of 2020, excluding loans to state-owned firms.
Sri Lanka’s fourth-largest lender is China, and the country is expected to repay $4.5 billion in debt in 2022, beginning with a $500 million international sovereign bond repayment on January 18.
Sri Lanka-China tussle intensifies as Qingdao fertiliser company to pursue arbitration in Singapore
Rajapaksa also asked China to establish a concessional trade-credit plan for Chinese imports and to aid in enabling Chinese visitors to visit Sri Lanka under the bio-bubble concept, said the statement.
As it faces approaching maturities and a growing balance of payments crisis, Sri Lanka sees the potential of additional loans from China to assist satisfy its debt service commitments, according to the Central Bank Governor, reported the news outlet.
Sri Lanka’s credit rating has been downgraded by Fitch Ratings and Moody’s Investors Service due to delays in obtaining new funds, which are necessary to satisfy loan commitments. Sri Lanka is on the verge of defaulting.
According to figures issued by the Central Bank of Sri Lanka, the country’s inflation rate reached a new high of 11.1 per cent in November 2021, with food inflation reaching 16.9.
A drop in the local currency, which plummeted by 7.5 per cent against the US dollar in 2021, prompted the price rise.
China has lent Sri Lanka more than $5 billion for highways, ports, an airport, and a coal power plant during the last decade. However, opponents claim that the funds were utilised for low-return white elephant projects, which China denies.
Sri Lanka is also an important element of Beijing’s Belt and Road Initiative (BRI), a long-term strategy to fund and construct infrastructure that connects China and the rest of the globe. Other countries, particularly the United States, have criticised the BRI, calling it a “debt trap” for developing countries, reported the news outlet.
Former US Secretary of State Mike Pompeo has also advised Sri Lanka against doing business with China, calling the Communist Party of China a “predator” that continues to violate sovereignty on land and at sea. (ANI)
The dollar-strapped Sri Lanka is finding hard to release foreign currency to buy fuel for the transportation and electricity generation…writes Susitha Fernando
Amidst the worst-ever power crisis connected to Sri Lanka’s ailing economy and Energy Ministry threatening to stop fuel supply for electricity generation from Tuesday, a Minister said fuel would be obtained from the Indian Oil Company (IOC) to generate electricity.
Power Minster Gamini Lokuge told the media that the Ceylon Electricity Board (CEB) management has been advised to start a discussion with the IOC to purchase furnace oil to generate power.
“I have advised the CEB officials to have a discussion on Tuesday with regard to supplying fuel for power generation,” the Minister said.
However Opposition parties complained that getting fuel from IOC is an underhand deal to get commission.
Former MP of the Marxist party Janatha Vimukthi Peramuna, Wasantha Samarasinghe said that the CEB could pay to the Ceylon Petroleum Corporation (CPC) and purchase fuel from it.
The dollar-strapped Sri Lanka is finding hard to release foreign currency to buy fuel for the transportation and electricity generation.
Sri Lanka-China tussle intensifies as Qingdao fertiliser company to pursue arbitration in Singapore
The country needs around $400 million to supply oil per month in addition to nearly $30 to buy fuel for power generation.
Energy Minister Uday Gammanpila argued that if the remaining fuel be given to generate electricity there would be a serious issue with regard to transportation.
Gammanpila also told media that he finds it difficult to import fuel as there are no dollars and suggested that the available fuel needs to be retained for more essential transportation by curtailing electricity.
“Transpiration needs to be given the priority over the electricity sector as without transportation the country will come to a standstill. By curtailing electricity we can still run the country.
“We are forced to decide not to provide fuel for the CEB to generate electricity. We don’t have excess stocks of fuel nor dollars to import fuel. If the CEB provides dollars we could provide fuel for power generation,” he added.
According to the Minister, 3,000 metric tonnes of diesel provided for power generation would be over on Tuesday and power generation will come to a standstill leading to daily power cuts.
For daily power generation, Sri Lanka needs 1,500 metric tonnes each of diesel and Naphtha.
Gammanpila further said that two ships with 76,000 metric tonnes of diesel are docked at the Colombo harbour and if dollars are provided fuel could be obtained from them.
Meanwhile the CEB’s Engineers Union warned that the thermal power generation stations will be stopped by 5 p.m. on Tuesday.
Dhammika Wimalaratne, Secretary of the Union, said that subsequently the national grid will lose around 300 megawatts of power.
Meanwhile, the country’s power crisis has worsened with the malfunctioning of one of the three power generating units at the China-built coal power plant in Norrochcholai.
Sawmya Kumarawadu, President CEB Trade Union Engineers, said that only Chinese engineers can repair it as Beijing has blocked access to certain areas of the system.
Narendra Modi with the Prime Minister of the Democratic Socialist Republic of Sri Lanka, Mr. Mahinda Rajapaksa, at Hyderabad House, in New Delhi
Jaishankar told Rajapaksa that India has always stood with Sri Lanka, and will continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by the Covid-19 pandemic….reports Asian Lite News
India has reaffirmed to Sri Lanka that it will be a steadfast and reliable partner of the island nation as both countries stand to gain from closer economic interlinkages.
New Delhi’s message was conveyed by External Affairs Minister S Jaishankar during a virtual meeting with the Finance Minister of Sri Lanka Basil Rajapaksa on Saturday.
The interaction follows Rajapaksa’s visit to India last month and comes close on the heels of Chinese Foreign Minister Wang Yi’s visit to Sri Lanka, last week.
Jaishankar told Rajapaksa that India has always stood with Sri Lanka, and will continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by the Covid-19 pandemic.
Both Ministers positively noted the extension of US$ 400 million to Sri Lanka under the SAARC currency swap arrangement and deferral of ACU settlement of USD 515.2 million by two months, which would assist Sri Lanka, India’s External Affairs Ministry said in a statement.
The two Ministers also reviewed the progress in extending the Indian credit facility of USD 1 billion for importing food, essential items, and medicine and USD 500 million for importing fuel from India.
Just concluded a detailed virtual meeting with Sri Lankan Finance Minister @RealBRajapaksa.
The Lankan Finance Minister recalled India’s long-standing cooperation with Sri Lanka and deeply appreciated the gestures of support. He welcomed Indian investments in Sri Lanka in a number of important spheres including ports, infrastructure, energy, renewable energy, power, and manufacturing and assured that a conducive environment will be provided to encourage such investments.
In this context, both Ministers noted that the recent steps taken by the government of Sri Lanka for jointly modernising Trincomalee Oil Tank Farms will boost the confidence of investors, apart from enhancing Sri Lanka’s energy security.
Being close friends and maritime neighbours, Jaishankar brought up the issue of Indian fishermen detained in Sri Lanka. He urged the Lankan government to ensure the early release of the detained fishermen on humanitarian considerations.
Jaishankar also conveyed greetings to Rajapaksa and the people of Sri Lanka for 2022 and on the occasion of the festival of Pongal celebrated by both countries as the ministers agreed to remain in close touch for guiding mutually beneficial bilateral economic cooperation towards long-term economic partnership for shared progress and prosperity.
A decision to this effect was taken during a meeting of the council held during the last week of December, 2021, sources in the council said….reports Asian Lite News
The advisory council constituted by the Tamil Nadu government to ascertain the living conditions and other details of Sri Lankan Tamils living inside and outside of camps will conduct a survey on the Sri Lankan Tamils who require Indian citizenship.
A decision to this effect was taken during a meeting of the council held during the last week of December, 2021, sources in the council said.
The advisory council, constituted after the Chief Minister had promised in the Assembly to study the details of Sri Lankan Tamils, would be conducting the survey soon within and outside the camps.
According to a study by the Tamil Nadu government, as of July 1, 2021, there are 58,668 persons from 18,937 families living inside the refugee camps for Sri Lankan Tamils constituted by the Tamil Nadu government over the years. The study also revealed that there are 34,123 persons of Sri Lankan origin living outside the camp from 13,553 families.
Sources in the advisory council informed IANS that after the survey results are obtained, the state government would request the Union Home Ministry to consider the case of the Sri Lankan Tamils and press for making necessary provisions in the Citizenship (Amendment) Act, 2019 to felicitate Indian citizenship for them.
Chennai North MP and member of advisory council Kalanidhi Veeraswamy said, “We will be writing to the Union Home Ministry and to the State government on the number of Sri Lankan Tamils who have arrived in the country since Independence and also seek details on the number of them who have got Indian citizenship.”
The Member of Parliament said that there were suggestions on categorising the Tamils who have arrived from Sri Lanka under multiple divisions like those who reached after the Sirimavo -Shastri pact and those who reached after the Sirimavo- Gandhi pact, those who have reached Indian shores during the war between the rebel forces and Sri Lankan Government and also children of those persons who were born in Tamil Nadu.
Kalanidhi Veeraswamy said: “There is a need to reach out to all of them and to find out on what all documents they have in their possession and to evolve policies based on these facts and then to press the Home Ministry as well as the state government.”
After witnessing two Covid-19 waves, Sri Lanka’s tourism was further ravaged by the third wave of the pandemic in April 2021…writes Susitha Fernando
Although the Sri Lankan tourism sector is still struggling due to the Covid-19 pandemic, the island nation received the highest number of foreign tourists in December 2021, with majority of the holidaymakers from India.
Despite shutting of borders in the wake of the health crisis for several months, a total of 194,495 tourists arrived in the island nation, with over one-fourth of them from India, said the Sri Lanka Tourism Development Authority (SLTDA).
The SLTDA said that India topped the list with 56,268 tourists, followed by Russia (16,268) and the UK (16,646), Germany (12,442), Ukraine (7,037), France (6,549), the US (6,124), Kazakhstan (5,754), Canada (5,079) and China (2,417).
After witnessing two Covid-19 waves, Sri Lanka’s tourism was further ravaged by the third wave of the pandemic in April 2021.
However one of the top tourist destinations in the world, Sri Lanka gradually opened for holidaymakers and a number of promotions were introduced in connection.
To get more visitors from the neighbouring nation, flag carrier SriLankan Airlines launched a ‘Buy One, Get One Free Ticket’ campaign for Indian tourists.
The airlines also started several weekly flights to Chennai and Mumbai, while operations commenced to Bengaluru, Madurai, Tiruchirappalli, Trivandrum, and Cochin.
In August 2021, the country opened its borders for fully vaccinated travellers and the next month it also removed the mandatory on-arrival PCR tests.
Sri Lanka’s tourism sector, the third highest foreign income earner, suffered a massive blow with the 2019 Easter Sunday attacks targeting Christian churches and five-star hotels in April 2019, killed nearly 250 people, including foreigners.
The country which was recognized as Lonely Planet’s number 1 travel destination in October 2019 was planning to attract 2.5 million tourists compared to its 2018 figure 2.3 million.
Sri Lanka recorded over 1.9 million tourist arrivals in 2019 earning around $3.5 billion.
As the pandemic raged, the sector further suffered in 2020, with the figure plunging to 570,000.
The agreement is also to help Sri Lanka to unlock $1.9 billion of support from India of which $400 million is a bank swap and $1.5 billion is in lines of credit. ….reports Asian Lite news
Sri Lanka is set to lease 14 of the 99 oil tanks in its strategic eastern port city Trincomalee to the India Oil Corporation (IOC) for 50 years, Petroleum Minister Udaya Gammanpila said on Friday.
Ending the long talks between India and Sri Lanka over the 99 World War II-era oil storage tanks to be leased to the IOC, he said 61 other tanks are to be developed under a newly-established joint venture company, Trinco-Petroleum Terminals Ltd.
“As a result of the agreement, 85 out of 99 tanks of the farm will be under the control of the CPC (the government-run Ceylon Petroleum Corporation), a total of 24 tanks directly by the CPC and 61 through the subsidiaries. Regaining the control of the Trinco oil tank farm by Sri Lanka is a historical victory,” Gammanpila told media.
PIc credits ANI
In 2003, the then Sri Lankan government headed by Ranil Wickremesinghe leased the 99 oil tanks for 35 years to India under an MoU.
Last week, Wickremesinghe had urged Sri Lankan government to expedite agreements with India and to facilitate the imports of oil and food to avert oncoming food crisis in the country.
The agreement is also to help Sri Lanka to unlock $1.9 billion of support from India of which $400 million is a bank swap and $1.5 billion is in lines of credit.
With Sri Lankan debts to China in excess of $8 billion, the room for manoeuvre for the government of the day was already quite limited…writes Sumit Kumar Singh
For some South Asian countries like Sri Lanka, Myanmar and Bangladesh, the ‘China Nightmare’ is no longer just a bad dream. It is a living reality, which continues to threaten the countries’ national interests, and eat away at their very sovereignty.
Sri Lanka’s fall into the dragon’s trap was triggered when China, taking advantage of the souring relations between Colombo and the Washington, started its aggressive courting of the Mahenda Rajapaksa government from the time he assumed office in 2005.
By 2007, the war against the LTTE was raging, and the island nation was facing increasing international criticism over human rights issues.
The US significantly reduced its foreign assistance package, and neighbour India’s assistance was constrained by the Tamil sentiments back home.
Aerial photo taken on June 30, 2021 shows a cargo ship at Sri Lanka’s Hambantota International Port. (Photo by Liu Hongru/Xinhua/IANS)
The dragon, which was closely watching, swooped in with a $37 million deal for Chinese ammunition and ordnance.
This was followed in 2008 by the gift of six F7 fighters, JY-11 radar and anti-aircraft guns. By the time the war with the LTTE ended in 2009, relations with China were upgraded to a ‘strategic cooperative partnership’.
However, the deadliest move made by China in its strategic game was made in 2007 itself, when it got Rajapaksa to lease land at Hambantota for construction of a port at a cost of $1 billion.
By 2014, Chinese aid and loans to Sri Lanka had exceeded a staggering $6 billion, which included the Colombo Port City Project (CPCP), the South Container Terminal at Colombo Port, an Exclusive Investment Zone 35 miles from Colombo port, and a railway project. The net had been cast.
It now remained for China to commence reeling it in.
President Xi Jinping, in his September 2014 visit to Sri Lanka, did just that, and an agreement for Chinese companies to operate the by now bleeding Hambantota port was signed.
Having snared its prey under a debt trap, Beijing then commenced leveraging its might into arm-twisting Colombo to get CCP Navy submarines to dock at Sri Lankan ports during their deployment to the Indian Ocean.
These submarines, which are accompanied by submarine rescue ships, have been entering the region more frequently in the recent past, and find Sri Lanka to be a convenient port of call.
What is interesting to note here is that Sri Lanka is the only country in the Indian Ocean besides Pakistan, where these submarines have entered during their deployment over the last seven years.
China’s shadow has also loomed large over Sri Lanka’s politics and elections.
After 2011, China had also been influencing Sri Lanka’s foreign policy decisions, having established a firm grip over the government through the bourgeoning debt traps.
With Sri Lankan debts to China in excess of $8 billion, the room for manoeuvre for the government of the day was already quite limited. And of course, Chinese diplomacy has always been very nimble to adjust its front to changing dynamics.
In the aftermath of the 2015 elections, China commenced courting not only the political parties, but also prominent Buddhist clergy in the island nation. This development was through the realisation of the influence of these religious figures in Sri Lankan domestic politics.
Sri Lanka-China tussle intensifies as Qingdao fertiliser company to pursue arbitration in Singapore
Certain other factors threaten to push Sri Lanka deeper into the dragon’s trap.
Last year, the IMF prematurely ended the $1.5 billion loan programme to the island nation. This was accompanied with the Covid pandemic, which delivered a terrible blow to Sri Lanka’s tourism industry.
This ‘double whammy’ ended any thoughts that Sri Lanka may have been nurturing of salvaging its situation against China.
In March this year, Sri Lanka announced a $1.5 billion currency swap with the Chinese Central Bank. It also declared its partnership with China in developing two irrigation reservoirs in the Sinharaja Reserve Forest, which is a UNESCO-protected heritage site.
In June 21, China Harbor Engineering Company (CHEC) bagged a project for construction of a 17-km elevated highway in Colombo, the terms of which provide full ownership to the company for revenue and profits for 18 years.
This is the same CHEC, which is a subsidiary of the China Communications Construction Company (CCCC) that is leading the Hambantota Port Project, Mattala International Airport and the $1.1 billion Colombo Port City.
For the 2015 elections, payments totalling to $1.1 million were linked from CHEC to Rajapaksa’s election campaign supporters.
Today, the situation is grim to the extent that the Chinese squeeze is resulting in Sri Lanka backing off from deals with other countries.
In December 2020, Sri Lanka cancelled a $480 million compact with the US Millennium Challenge Corporation. In the same month, Sri Lanka also cancelled the Colombo East Container Terminal Agreement, in which both India and Japan were signatories.
There have been some attempts made by Sri Lanka this year to showcase ‘non-alignment’ in strategic projects, but the Chinese influence in Sri Lanka makes these efforts appear extremely feeble as of now.
The Chinese strategy is a cancerous trap that lures its victims at a time when they are at their weakest.
The bait however, remains constant – money and apparent ‘soft’ loans, thereby trapping the Government of the day in frivolous infrastructure projects at rates which are ‘too good to be true’.
The modus operandi of engagement has been similar in Africa, Asia and Latin America where countries have been indebted with Chinese loans of billions of dollars.
Sri Lanka was baited when it was facing international criticism on human rights issues, and its strategic allies and neighbours such as the US and India were not available to help.
The decisions made by the Sri Lankan leadership at that time led to the dragon wrapping itself around its prey, and today the island nation is finding its strategic decision making increasingly constricted by this tight grip of Beijing.
