China’s Debt Trap: India May Be Out Of The Colombo Port Deal?

20 July, 2020

China is not just Pakistan’s lifeline, but Nepal’s guide, mentor and creditor too. It is not set to be Iran’s biggest investor too with a 400 million dollars new deal.

And now China is tightening its grip on Sri Lanka by pushing India and its allies out.

Take a look at China’s encirclement strategy. How China is building ports and infrastructure around the Indian subcontinent.

Sri Lanka is a key part of this strategy. The country had to give up the Hambantota Port to China on a 99 year lease. With this port, Colombo has given Beijing a strategic foothold along a critical, commercial and military waterway.

A report that came out 10 days ago suggest Sri Lanka is rethinking of a port deal with India.

The deal was signed between India, Japan and Sri Lanka in 2019 and allowed India and Japan to develop a new east container terminal.

As per the agreement, Sri Lanka has the majority, 51 per cent stake at the deal, but still President Gotabaya Rajapaksa wants to shelve it.

Apparently, the workers at the Colombo port want the deal scrapped, a reason that looks silly.

A closer look at the issue declutters the situation. Sri Lanka is flush with Chinese funds and 12 per cent of its debts are owed to Beijing.

This means China dictates terms and that explains the situation itself.

Rajapaksa seems to be distancing himself from the grants and funds offered by the Quad nations.

In June, a Japan-funded rail project was shelved. Sri Lankan officials urged the president to refuse a $480 million grant from the US, however, final decision is yet to be taken.

And now India’s role in the Colombo port is under a shadow.

These developments benefit only one party, and that’s China.

Beijing is securing its strong foothold in Sri Lanka and wants to drive others out.

Also, China is meddling in Lankan politics too. General elections are due in the island nation and reports suggest Chinese are cultivating a “wide swathe of political allies”. Representatives from China are meeting leading political parties.

Some of these meetings are happening behind closed doors, others are out in open.

A picture was clicked last year, which has an interesting composition. All leading political parties in Sri Lanka and the members of the Communist Party are present in a single frame.

This means that China is investing in all political players. So, it doesn’t matter who gets elected on the upcoming elections, but China will be the winner.

Six days ago, China’s state wire agency said the Chinese embassy donated masks to the election commission of Sri Lanka

The press release went on to describe how China “supports” Sri Lankan local, and central governments, enterprises, organisations and individuals.

In March, Colombo sought a loan of $500 million from China to fight the Wuhan virus and Beijing was quick to write the cheque and draw Colombo deeper in its trap of debt.

The views expressed in this article are the writer’s, they do not reflect the views of Opera News.

Source: defencenews.in

Courtesy: Opera News/ defencenews.in