Posts tagged ‘Colombo’

13/03/2015

India seeks edge over China as Modi visits Sri Lanka | Reuters

When Sri Lanka’s President Maithripala Sirisena received India’s Prime Minister Narendra Modi at an ocean-front colonial building on Friday, the two looked out over a $1.4 billion Chinese real estate project halted days ago after criticism from New Delhi.

India's Prime Minister Narendra Modi (L) talks to Sri Lanka's President Maithripala Sirisena at the Presidential Secretariat in Colombo March 13, 2015. REUTERS/Dinuka Liyanawatte

The vista will have pleased Modi, whose government strongly opposed the land reclamation project inaugurated by China’s President Xi Jinping last year under a deal that gives China ownership of a patch of land overlooking a strategic port.

Modi’s was the first bilateral visit by an Indian premier in 28 years, a sign of a friendship that has warmed rapidly since a January election ousted a leader whose close ties with China had left Sri Lanka’s larger neighbour feeling unloved.

India and China are increasingly jostling for influence in South Asia and the Indian Ocean and former Sri Lankan President Mahinda Rajapaksa‘s decision to let Chinese submarines dock in Colombo port and the real estate deal were very worrying for New Delhi.

via India seeks edge over China as Modi visits Sri Lanka | Reuters.

03/03/2015

Sri Lankan doubts on loans, submarines seen as rebuff to Beijing | Reuters

If last week’s visit to Beijing by Sri Lankan Foreign Minister Mangala Samaraweera was meant to allay fears that the island nation’s new government was distancing itself from China, it failed.

China's Premier Li Keqiang (R) speaks with Sri Lanka's Foreign Minister Mangala Samaraweera during their meeting at the Zhongnanhai Leadership Compound in Beijing, February 27, 2015. REUTERS/Wu Hong/Pool

If anything, Samaraweera’s comments on the prospect of Chinese submarines using Sri Lanka as a stopover on long-distance westward missions and of bankrolling it through big loans underlined Colombo’s hardening position, experts said.

That would be welcomed by India, which, as Sri Lanka’s neighbour and traditional protector, had grown alarmed at its lurch towards China under the leadership of former president Mahinda Rajapaksa, ousted in a shock election defeat in January.

“Some people say the (Sri Lankan) government had put too many eggs in the China basket,” said Sinderpal Singh, an India expert at the National University of Singapore.

“It’s a symbol to say ‘we would like to recalibrate our policy to one equidistant between India and China’.”

During his trip, Samaraweera said he did not envisage any more visits by Chinese submarines in the near future.

India voiced concern in November when Rajapaksa’s government allowed a Chinese submarine and warship to dock in Colombo, seven weeks after another submarine called at the same port.

One of the submarine dockings coincided with a state visit by Japanese Prime Minister Shinzo Abe, himself wary of China’s increasingly assertive projection of naval power.

“…We will ensure that such incidents, from whatever quarters, do not happen during our tenure,” Samaraweera said of the potential diplomatic embarrassment.

Samaraweera made the remarks to the press and did not discuss warships or submarines during talks with Chinese officials, according to a member of the Sri Lankan delegation.

And while his comments do not preclude the future use of Sri Lankan facilities by Chinese submarines, they pointed to greater caution both in economic and military relations.

via Sri Lankan doubts on loans, submarines seen as rebuff to Beijing | Reuters.

16/02/2015

India seals nuclear energy pact with Sri Lanka, hopes to push back Chinese influence | Reuters

India sealed a nuclear energy agreement with Sri Lanka on Monday, its first breakthrough with the new government of the tiny Indian Ocean island where China has been building ports and highways in a diplomatic push in recent years.

Indian Prime Minister Narendra Modi (R) gestures to Sri Lanka's President Mithripala Sirisena's wife Jayanthi Sirisena (2nd L) as India's President Pranab Mukherjee (L) looks on during Sirisena's ceremonial reception at the forecourt of India's Rashtrapati Bhavan presidential palace in New Delhi February 16, 2015. REUTERS/Adnan Abidi

Under the deal, India will help Sri Lanka build its nuclear energy infrastructure, including training of personnel, the Indian foreign ministry said.

Later, India could also sell light small-scale nuclear reactors to Sri Lanka which wants to establish 600 MW of nuclear capacity by 2030, a Sri Lankan official and an Indian analyst said.

The deal came as Sri Lankan President Maithripala Sirisena began a visit to India, his first trip abroad since he swept to power in January, which has provided New Delhi with an opening to repair ties that had become tense under his predecessor.

“The bilateral agreement on civil nuclear cooperation is yet another demonstration of our mutual trust,” Indian Prime Minister Narendra Modi said in a statement.

India had grown increasingly wary of former president Mahinda Rajapaksa‘s pursuit of closer ties with China, which became a key supporter of the island’s economy after its 26-year-civil war ended in 2009.

China has built a seaport in the south of the country and signed a deal to develop a $1.5 billion port next to the commercial port in Colombo, raising fears Beijing is seeking influence in the island state with which New Delhi has had historical ties.

Ties worsened further after the Rajapaksa government allowed Chinese submarines to dock last year.

Modi said the two countries also agreed to expand defense cooperation, but gave no details. “This is my first visit and it has given very fruitful results,” Sirisena said.

Since coming to power last year, Modi has reached out to neighbors, offering to build power stations and ports, in a bid to push back against China.

Next month he plans to travel to Sri Lanka and the Maldives where too Beijing is seen to be expanding its diplomacy as part of a strategy to build a network of ports in the Indian Ocean through which much of its trade and energy supplies transit.

Sirisena has pledged to pursue a more global foreign policy.

via India seals nuclear energy pact with Sri Lanka, hopes to push back Chinese influence | Reuters.

12/01/2015

Sri Lanka’s President Loses an Election—and China Loses an Ally – Businessweek

China has spared no effort to make friends with Sri Lankan President Mahinda Rajapaksa. The island nation has more than $4 billion worth of Chinese-backed investments, including a $1.4 billion project now under construction of offices, hotels, apartment buildings, and shopping centers on reclaimed land in Colombo that is the largest foreign investment in the country’s history. The leading provider of loans to Sri Lanka, China is also financing a $1.3 coal power plant and $1 billion highway.

Supporters of Sri Lankan President Mahinda Rajapaksa on January 8, 2015 in Colombo, Sri Lanka

For Chinese President Xi Jinping, who visited in September, cozying up to Rajapaksa has been a twofer. Building a Chinese presence in the country helps further Xi’s ambitions to build a “maritime Silk Road” expanding China’s reach in the Indian Ocean.

At the same time, China’s expansion in the Indian Ocean country has provided a useful way to irritate Sri Lanka’s big neighbor and China’s regional rival: India. China and India have a longstanding border dispute, and China has been eager to take down India a notch by focusing on Sri Lanka and other small countries that have traditionally been in India’s sphere of influence. India, for instance, was displeased last year when two Chinese submarines docked at a Chinese-funded port terminal in Colombo.

via Sri Lanka’s President Loses an Election—and China Loses an Ally – Businessweek.

24/07/2013

Sri Lanka teams up with Chinese firm for $1.4 billion port city

Reuters: “Sri Lanka has finalized a $1.43 billion deal with China Communications Construction Co Ltd (601800.SS) to build a city on a 230 hectare site that will be reclaimed from the sea, the head of the state-run Ports Authority said on Wednesday.

A general view of the Colombo South Harbor at Colombo Port July 24, 2013. REUTERS-Dinuka Liyanawatte

The site is next to the island nation’s main Colombo port and Colombo‘s historic Galle Face Green seafront. It is also close to where Shangri-La Hotels Lanka Ltd, a subsidiary of Hong Kong-listed Shangri-La Asia Ltd (0069.HK), is building a 500-room hotel.

“The Chinese firm will invest in reclaiming the land and infrastructure of the port city,” Priyath Wickrama, chairman of Sri Lanka Ports Authority, told reporters. “It will be given around 50 hectare of reclaimed land on a 99-year lease for its investment.”

The 39-month long construction project will start in September, Wickrama said, adding the city would include eco-parks, residential areas, offices and shopping malls.

Since the end of a nearly three-decade war in May 2009, the Indian Ocean island nation has been spending heavily on infrastructure, including ports to attract foreign investments to its $59 billion economy.

It has already created new land near the proposed port city as part of its expansion of the Colombo port to double its capacity by 2015.”

via Sri Lanka teams up with Chinese firm for $1.4 billion port city | Reuters.

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