The Economics of the China-India-Sri Lanka Triangle Daily News (via HT Media Ltd.)
Sri Lanka’s relationship with China has been a controversial discussion during the last decade, dominating both domestic and international political conversations. The strengthening relationship between the island nation and the emerging global power has been largely economic. Yet it is quite clear that Sri Lanka’s closest neighbour, India, and the United States are diligently monitoring these developments in the China–Sri Lanka relationship.
China has been a major economic partner for Sri Lanka. Beijing’s assistance has been crucial in saving the poorly performing Sri Lankan economy during the last three years. At the same time, Sri Lanka is compelled not to antagonize India, its closest neighbour, with which Sri Lanka’s relationship runs deep and far back. The India–Sri Lanka relationship is vastly different than its ties with China.
The Economics of the China-India-Sri Lanka Triangle thediplomat.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thediplomat.com Daily Mail and Mail on Sunday newspapers.
Posted on April 13th, 2021
The visit has significance due to China’s growing ties with countries in the region and the US policy of containing China through the Quad.
The visit to Sri Lanka of China’s Defense Minister General Wei Fenghe later this month, may be described as a routine ministerial visit”. But seen in light of the developing situation in Sri Lanka and the South Asian and Indian Ocean region, the visit is significant.
China is keen on developing ties with India’s neighbors in South Asia to wean them away from New Delhi. Beijing is effectively using its infrastructural development program under the Belt and Road Initiative (BRI) towards this end. It is also strengthening its military ties albeit only incrementally so far. At present it is keen to project itself as a benign” power only promoting joint prosperity unlike the Western powers whose aims are imperialistic.
LankaWeb – China s US$ 500 m New Year gift to Sri Lanka lankaweb.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lankaweb.com Daily Mail and Mail on Sunday newspapers.
China Development Bank (CDB) and Sri Lankan Finance Ministry on Monday signed USD 500 Million Foreign Currency Term Financing Facility (FTFF), which is the second tranche of the total RMB 2 billion plus USD 1 billion FTFF supported by the Chinese side to Sri Lanka after the outbreak of COVID-19 pandemic.
Earlier in March, the two Central Banks also entered into a bilateral currency swap agreement amounting to CNY 10 billion (approximately US$ 1.5 billion) valid for a period of three years, with a view to promoting bilateral trade and direct investment for eco-social development of the two countries. This FTFF was requested by the Sri Lankan government under the current financial situation in the island nation and the background of fighting COVID-19 pandemic with all-out efforts. It is with a maturity period of ten years (including a grace period of three years), which is the longest tenure of term financing facilities for Sri Lanka.