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China-Sri Lanka Cooperation: News & Discussions

China-funded highway projects to continue in Sri Lanka: minister

Sri Lanka will continue its multi- million U.S. dollar infrastructure upgrade that includes major projects with China, the country's Highway and Investment Minister Hashim has said.

Minister Hashim met with Ambassador Yi Xianliang to exchange views on bilateral infrastructure cooperation, a statement from the ministry said on Tuesday.

The minister thanked China's long- term support to Sri Lanka and appreciated Chinese companies' contributions to its economic development.

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China-funded highway projects to continue in Sri Lanka: minister - People's Daily Online

 
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Sri Lanka begins construction on new Chinese-funded expressway

Sri Lanka on Saturday launched construction work on a Chinese-funded expressway linking the southern towns of Matara and Hambantota.

President Maithripala Sirisena unveiled a plaque at the site where construction will begin in the presence of government ministers and Chinese Ambassador to Sri Lanka.

 
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China’s ‘win-win’ diplomacy riles India | Asia Times

The Sri Lankan government has cleared one more Chinese project – the expressway linking the southern port city of Hambantota with Matara, which will be the second phase of the previous Chinese-funded project that connects Matara with Colombo. This was one of former President Mahinda Rajapaksa’s pet projects – connecting his hometown with the capital.


The Chinese government-owned CTGC is open to funding $50 billion worth hydroelectric power projects in Pakistan

At the ceremony marking the launch of the new project on Saturday, President Maithripala Sirisena said China is a “very close friend” and Sri Lanka has “a lot of respect” for China for providing development assistance. He vowed to work with China to “further strengthen” the ties between the two countries and promised continuity with the previous government’s policies.

To be sure, the developments in Sri Lanka must come as a morality play for the Indian foreign and security policy establishment. Indeed, the right-wing Hindu nationalist organization Rashtriya Swayamsevak Sangh (which mentored the Narendra Modi government’s Sri Lanka policy from behind the scenes) must be feeling shell-shocked.

What happened to the Tibetan scud missile India hoped to fire at China by getting Sirisena to host the Dalai Lama in Colombo? Mum is the word in Delhi.

It will be good fun to read again a commentary on the implications of the “regime change” in Sri Lanka last January, featured on the website of the Vivekananda Foundation: “More than anything else… Sirisena will have to recalibrate Colombo’s equations with Beijing. Over the past half a decade, Rajapaksa had deftly used the Chinese card against India… Rajapaksa allowed the Chinese large stakes in vital sectors of Sri Lanka than necessary… Sirisena had promised to review that policy.

“Fortunately, the [Indian] foreign policy establishment appears to be thinking on its feet. Prime Minister Narendra Modi was the first leader to call Sirisena and congratulate him. India’s high commissioner to Colombo Yash Sinha also was the first off the block to go and meet the new President [Sirisena].”

Evidently, Sirisena has a mind of his own and Modi and Sinha’s goodwill gestures notwithstanding, Sri Lanka has no intentions to curb its relations with China in deference to Delhi’s wishes.

The point is, China-funded projects in Sri Lanka created over a hundred thousand jobs during the past 5-year period. It appears that 90 percent of the labor force in the Chinese-funded projects consisted of the local youth, many of whom have been trained by the Chinese companies to handle new technology.

Be that as it may, another report coming in from Pakistan is even more of an embarrassment for the Modi government than Sirisena’s China policies.

Delhi has let it be known that it is displeased with the construction of the China-Pakistan Economic Corridor in which Beijing has pledged to invest $46 billion. India’s grievance is apparently that some of the projects in the Economic Corridor are located in the Azad Kashmir and the Northern Areas of Pakistan, which India claims as its territories.

Now comes the startling report that the Chinese Leviathan specializing in dam construction, China Three Gorges Corporation [CTGC], is open to funding $50 billion worth hydroelectric power projects in Pakistan, many of them in the so-called Indus Cascade on territories that India claims to be its, such as Skardu in Gilgit-Baltistan.

Delhi’s demarche to Beijing to lay off Indian territories (within Pakistan) is being ignored. However, the curious part is that CTGC has a Pakistani subsidiary known as China Three Gorges South Asia [CSAIL] in which the International Finance Corporation [IFC] headquartered in Washington holds a 15 percent stake. The CTGC chairman Lu Chun was quoted during a visit to Islamabad in April as saying,

“Pakistan is one of the most important overseas markets of CTGC, we are pleased to contribute to the development of Pakistan’s economy, along with IFC. China Three Gorges South Asia Investment Limited will grow together with Pakistan’s economy, and proactively explore new cooperation opportunities across the region.”

In sum, the Chinese company is joining hands with a member of the World Bank group to fund power projects in Pakistan. What can Delhi do now? Lodge protest with Washington?

Trickier than the above two unhappy instances is going to be the latest Chinese proposal for building an Economic Corridor from Tibet to India via Nepal. It is one of those “win-win” projects that Delhi will have difficulty to stonewall. The problem is that both China and Nepal are keen on it but Delhi is apprehensive that the project may undercut India’s calculus that Nepal falls within its “sphere of influence.”

Of course, given the Chinese diplomatic ingenuity, it is entirely conceivable that there will be downstream “win-win” proposals at some point to have the Tibet-Nepal-India Economic Corridor extended to Bhutan and Bangladesh as well.

Oh, these Chinese and their “win-win” projects in South Asia! The Modi government’s South Asian diplomacy is landing in a cul-de-sac. Its twin-objective has been to get Beijing (and the international community) to tacitly accept the South Asian region as India’s “sphere of influence” and, secondly, to dissuade India’s small neighbors from cozying up to China.

China is ignoring the Indian entreaties, while the small South Asian countries apparently love to hold the Chinese hand.

India’s retaliatory steps so far – new defense pact with the US, strengthening of US-Japan-India trilateral forum, naval deployments in the South China Sea, Indian warships calling on Perth, proposed naval exercise with the US and Japan in the Bay of Bengal and so on – do not appear to impress the Chinese. If anything, they might be inspiring Beijing to conjure up all-the-more seductive “win-win” projects in the South Asian region.

A face-saving exit route for India’s diplomacy seems to be to join China’s “win-win” projects and to influence them from within. Wasn’t it Abraham Lincoln who said – ‘The best way to destroy an enemy is to make him a friend’?
 
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To be sure, the developments in Sri Lanka must come as a morality play for the Indian foreign and security policy establishment. Indeed, the right-wing Hindu nationalist organization Rashtriya Swayamsevak Sangh (which mentored the Narendra Modi government’s Sri Lanka policy from behind the scenes) must be feeling shell-shocked.

In the end, most governments are pretty rational animals. They will opt for the better over the meager. Which one would a sane person go for if one had to choose between two development schemes: One from China, the other from India?

It will be good fun to read again a commentary on the implications of the “regime change” in Sri Lanka last January, featured on the website of the Vivekananda Foundation: “More than anything else… Sirisena will have to recalibrate Colombo’s equations with Beijing. Over the past half a decade, Rajapaksa had deftly used the Chinese card against India… Rajapaksa allowed the Chinese large stakes in vital sectors of Sri Lanka than necessary… Sirisena had promised to review that policy.

Ah, we know it. We know Indian bragging and over-hyping. But they have long forgotten it and now being excited about new stuff.

Evidently, Sirisena has a mind of his own and Modi and Sinha’s goodwill gestures notwithstanding, Sri Lanka has no intentions to curb its relations with China in deference to Delhi’s wishes.

The point is, China-funded projects in Sri Lanka created over a hundred thousand jobs during the past 5-year period. It appears that 90 percent of the labor force in the Chinese-funded projects consisted of the local youth, many of whom have been trained by the Chinese companies to handle new technology.

That's characteristics of China's development projects. We might sell you fish. But we also teach you how to fish.
 
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China always knows how to turn things into its favour. In the future, I expect Chinese warships and submarines to be stationed in Sri Lanka as China's influence grows.
 
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Sri Lanka eyes China as major source of FDI
2015-08-10


Under the new government, Sri Lanka is looking at China as a major source of foreign direct investment (FDI) to further expand its growing economy, a top business executive said.

In an interview with Xinhua, Mangala P.B. Yapa, CEO of Sri Lanka's biggest business group, the Ceylon Chamber of Commerce, said China and Sri Lanka had been trading partners for years and due to Sri Lanka's strategic importance, China can pour investment into the country to benefit not only both nations but other South Asian countries as well.

"China is a fast growing market. China's expanding middle class and upper class will require a lot of goods and services that Sri Lanka can provide. On the other hand, China is also looking at investment globally with Sri Lanka as an ideal destination," Yapa said.

So far, bilateral trade between Sri Lanka and China was valued at more than 3 billion U.S. dollars. But Sri Lanka is looking forward to increasing its exports to the world's second largest economy.

In order to further improve their business relations, Chins and Sri Lanka are working out a free trade agreement.

"China has been and will be a strong partner for Sri Lanka's economic growth. I see this as a relationship which needs to be further strengthened," Yapa said.

In January, Sri Lanka elected its new president, Maithripala Sirisena, whose campaign pledge was to reduce corruption and promote good governance. In line with this promise, all major infrastructure projects have been submitted for review by a government body whose function is to ensure that all government projects have complied with all legal requirements of Sri Lanka.

Relations between the two countries had encountered a slight bump after the 1.5-billion-U.S. dollar expansion of the Colombo port project was suspended for a review process when the new president took over. Nonetheless, officials of the Sri Lankan government have assured that relations with China are important to them and will continue to prosper.

"I think the suspension is a temporary setback and has no long- term effect. It is just a question of addressing some of the concerns that were there and making them more transparent and I really do not see a major problem in moving forward in this regard, " Yapa said.

According to Yapa, Sirisena's recent visit to China was a clear indication of Sri Lanka's commitment to strengthen its relations with China. "Because of this, I really do not see any major problem in attracting Chinese FDI to Sri Lanka and for Sri Lanka to increase its exports to China," he said.

China became Sri Lanka's largest loan provider after the end of three decades of civil war in 2009. Beijing has provided Colombo with over 5 billion U.S. dollars in loans, mostly for massive infrastructure projects, including highways, railways and ports, and another 1.2 billion U.S. dollars for a coal-power plant.

In March, the new president paid his first visit to China with both sides pledging to further strengthen bilateral relations. During the tour, Sri Lanka's new government received significant grants, mostly for construction of hospitals to upgrade the country's public health sector.

Sri Lanka also sees great opportunities of growth as the economy expands after the end of the civil war. Sri Lanka grew by 7.4 percent in 2014 and although growth is expected to slow marginally to 7 percent this year, the country remains and exciting investment point in South Asia.

"Sri Lanka has got a very good opening and space for opportunity. There had been a change and this change gave a new backdrop at which business can look at multiple opportunities," Yapa said, adding that the country is aiming for an inclusive growth that would benefit a large segment of the Sri Lankan population.

He said recent political changes in the country have been viewed positively by the business community, and the new growth opportunities are expected to be outlined by the new government later this year.

"I look at the changes positively and consider them as opportunities for Sri Lanka to integrate with the global economy," he said.
 
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Chinese funding pours into Sri Lanka hydropower projects
08-17-2015 14:39 BJT


The beautiful island nation, Sri Lanka stands right off the southeastern tip of India. The country is located in the middle of busy shipping routes in the Indian Ocean.

Accordingly, Sri Lanka's government in Colombo has given the green light in recent years for major infrastructure development to establish the country as a manufacturing and trading hub. Support for large-scale infrastructure projects can also lead many Sri Lankans out of poverty.

Yet, Sri Lanka continues to lack a reliable electric grid, while the country remains dependent on oil imports. Rapid economic growth means rising energy demand, but power outages occur frequently here.

However, Sri Lanka has a tropical climate with plenty of water resources, which create favorable prospects for a strong hydropower sector.

ICBC to finance Broad Lands Hydropower Plant with loan

Chinese investors, banks and companies are looking to engage in more eco-friendly energy projects from all over the world, which include financing hydropower projects in Sri Lanka.

Earlier this month, the Industrial and Commercial Bank of China (ICBC) announced that the bank would grant a $US82 million loan to construct a hydropower project in Kithulgala, 90 miles northeast of Colombo, which is expected to add 35 MW (megawatts) for the national grid, according to News.LK Website.

Project developers plan to build a dam – 24-meters high and 113-meters long – across the Kelani River; along with a tunnel – 3.5-km long - that would connect a hydropower plant to be established in Yatiyanthota. Sri Lanka's Ministry of Power and Energy played a leading role to jumpstart the project.

Mixing sun and water for energy

Yes, water appears plentiful in Sri Lanka, but prolonged droughts could dampen the reliability of hydropower. Hence, China-based solar energy company, Hanergy Group, held a forum last September in Colombo to address: Integrating solar and hydropower sources for the country.

Helen Zhang, vice president of Hanergy Group China, pointed to a scientific study showing that Sri Lanka on average gets 5-5.9 hours of sunshine, daily (hrs/d), as compared to 2.2 hrs/d for Germany.

Additionally, Colombo has set an ambitious nationwide target of 20 percent power generation from renewables by 2020 and 100 percent electrification of households by the end of 2015.

"Conventional energy sources such as oil, coal, peat and uranium are depleting rapidly in the world," Zhang told the Sunday Observer. "The world is now focusing on harnessing … renewable energy sources such as wind, solar, tidal wave, biomass and hydropower generation, which is cheap and environment-friendly."

Overcoming a dependency on oil imports

Sri Lanka holds tremendous potential to capture greater prosperity for its citizens, but the nation remains addicted to oil imports, as reported by Sunday Island News.

Sri Lanka imports annually: 2 million metric tons (MMT) of crude oil; 4 MMT of refined petroleum products, as well as $US 5bn of coal, which all account for 44 percent of national energy supply; 25 percent of import expenditures and 50 percent of total export income.

Fortunately, geologists have recently uncovered rich deposits of gas in the country, but for the time being, hydropower stands as the best solution for Colombo to establish its energy independence.

Hanergy is making plans to set up Sri Lanka's largest solar-hydro power project as a bridge to introduce more cost-effective sustainable development for the Sri Lankan people.

Making dreams come true with mini-hydropower plants

The Ceylon Electricity Board had disclosed that Sri Lanka currently has 1,361 MW of hydropower capacity with the potential to generate 400 MW more with further development of small hydropower plants.

Here's where Chinese green-friendly investors can step in to provide more support, financing and construction of mini-hydropower projects in Sri Lanka that can bring in more cash revenues for them while they are doing their part for a Greener World.
 
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Chinese funding pours into Sri Lanka hydropower projects
08-17-2015 14:39 BJT


The beautiful island nation, Sri Lanka stands right off the southeastern tip of India. The country is located in the middle of busy shipping routes in the Indian Ocean.

Accordingly, Sri Lanka's government in Colombo has given the green light in recent years for major infrastructure development to establish the country as a manufacturing and trading hub. Support for large-scale infrastructure projects can also lead many Sri Lankans out of poverty.

Yet, Sri Lanka continues to lack a reliable electric grid, while the country remains dependent on oil imports. Rapid economic growth means rising energy demand, but power outages occur frequently here.

However, Sri Lanka has a tropical climate with plenty of water resources, which create favorable prospects for a strong hydropower sector.

ICBC to finance Broad Lands Hydropower Plant with loan

Chinese investors, banks and companies are looking to engage in more eco-friendly energy projects from all over the world, which include financing hydropower projects in Sri Lanka.

Earlier this month, the Industrial and Commercial Bank of China (ICBC) announced that the bank would grant a $US82 million loan to construct a hydropower project in Kithulgala, 90 miles northeast of Colombo, which is expected to add 35 MW (megawatts) for the national grid, according to News.LK Website.

Project developers plan to build a dam – 24-meters high and 113-meters long – across the Kelani River; along with a tunnel – 3.5-km long - that would connect a hydropower plant to be established in Yatiyanthota. Sri Lanka's Ministry of Power and Energy played a leading role to jumpstart the project.

Mixing sun and water for energy

Yes, water appears plentiful in Sri Lanka, but prolonged droughts could dampen the reliability of hydropower. Hence, China-based solar energy company, Hanergy Group, held a forum last September in Colombo to address: Integrating solar and hydropower sources for the country.

Helen Zhang, vice president of Hanergy Group China, pointed to a scientific study showing that Sri Lanka on average gets 5-5.9 hours of sunshine, daily (hrs/d), as compared to 2.2 hrs/d for Germany.

Additionally, Colombo has set an ambitious nationwide target of 20 percent power generation from renewables by 2020 and 100 percent electrification of households by the end of 2015.

"Conventional energy sources such as oil, coal, peat and uranium are depleting rapidly in the world," Zhang told the Sunday Observer. "The world is now focusing on harnessing … renewable energy sources such as wind, solar, tidal wave, biomass and hydropower generation, which is cheap and environment-friendly."

Overcoming a dependency on oil imports

Sri Lanka holds tremendous potential to capture greater prosperity for its citizens, but the nation remains addicted to oil imports, as reported by Sunday Island News.

Sri Lanka imports annually: 2 million metric tons (MMT) of crude oil; 4 MMT of refined petroleum products, as well as $US 5bn of coal, which all account for 44 percent of national energy supply; 25 percent of import expenditures and 50 percent of total export income.

Fortunately, geologists have recently uncovered rich deposits of gas in the country, but for the time being, hydropower stands as the best solution for Colombo to establish its energy independence.

Hanergy is making plans to set up Sri Lanka's largest solar-hydro power project as a bridge to introduce more cost-effective sustainable development for the Sri Lankan people.

Making dreams come true with mini-hydropower plants

The Ceylon Electricity Board had disclosed that Sri Lanka currently has 1,361 MW of hydropower capacity with the potential to generate 400 MW more with further development of small hydropower plants.

Here's where Chinese green-friendly investors can step in to provide more support, financing and construction of mini-hydropower projects in Sri Lanka that can bring in more cash revenues for them while they are doing their part for a Greener World.

Good.

China is a blessing to Dharmic land.

Meanwhile, Sri Lanka should get as far away from India as possible. Whenever India come, there must be shit. And last time there are Tigers in Ceylon mainly because of India.

China is the biggest helper to hunt down Tigers.
 
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China-Sri Lanka ties transcend partisan politics
By Yu Ning 2015-8-19 1:13:01

Sri Lanka's parliamentary election concluded on Tuesday, with the United National Party (UNP) edging out its rival, the United People's Freedom Alliance (UPFA). Mahinda Rajapaksa, former president and the UPFA's candidate for prime minister conceded defeat.

The election has drawn considerable attention as it was viewed as a comeback bid by Rajapaksa. It is also of great significance to Sri Lanka's political stability and to whether the reform launched by President Maithripala Sirisena would be disrupted.

Since Rajapaksa announced his run, some Western and Indian media have deliberately portrayed him as "Beijing's preferred candidate" and highlighted that his defeat would be frustrating for Beijing. When the allegedly pro-China former president was unseated by Sirisena in January, there was also speculation that the change of government would pose challenges to Sino-Sri Lankan ties and particularly for the Chinese investments in the country.

Although partisan politics may have a certain effect on bilateral ties, it's inappropriate to exaggerate the influence. To consolidate high-level strategic cooperation with China has gained bipartisan backing in Sri Lanka's parliament. No matter which party takes power, it will maintain a good relationship with China.

Ranil Wickremesinghe, the incumbent prime minister and who just won enough seats for a second term, told the Financial Times that the UNP would continue to deepen investment ties with China if it retained power. President Sirisena has reiterated on different occasions the importance of Sri Lanka's relationship with China and called the world's second-largest economy "a close partner."

Over the past decade, Chinese investment and other kinds of support have played a critical role in stabilizing the country and driving its economy forward. Although the Sirisena government is recalibrating its foreign policy and seeking a balanced approach in handling relations with big powers, China cannot be avoided. It's only the outsiders' wishful thinking that partisan politics will stagnate or even turn back China-Sri Lanka relations. China will also not depend on any single party to maintain the bilateral relationship.

Wickremesinghe retained his power in the parliamentary election, which means the current political framework and power structure will be sustained. The government is expected to gradually resume the suspended foreign-invested projects for the needs of economic development. In March, Sri Lanka suspended a $1.4 billion Chinese-invested port project for review along with other foreign cooperation projects. Earlier this month, Finance Minister Ravi Karunanayake said in an interview with Reuters that Sri Lanka hopes to negotiate a "win-win" compromise that would allow the suspended Chinese projects to resume after months of delays.
 
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Indian neighbors know that China is a better partner for development.
 
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Sri Lanka Can Play Key Role in China's Maritime Silk Road, Says Leading Analyst
2015-09-01

Sri Lanka can play a central role in the 21st Century Maritime Silk Road proposed by China as the island nation enjoys a strategically important geographical location in the Indian Ocean, said a leading analyst.

Asanga Abeyagoonasekera, former executive director of Sri Lanka’s Lakshman Kadirgamar Institute for International Relations and Strategic Studies, said recently that with a history of innovation and active cooperation in maritime activities, Sri Lanka had the ability to play a vital and centralized role in promoting China's 21st Century Maritime Silk Road.

"When China is proposing a cooperative mechanism to build the 21st Century Maritime Silk Road for joint development, Sri Lanka is ready to play a central role due to its geographical positioning at the center of the Indian Ocean," said Abeyagoonasekera.

He said that Sri Lanka can make its contribution in areas such as trade, combating terrorism and security and confidence building and cooperation on the "Belt and Road" initiative.

"China's proposal of the (21st Century) Maritime Silk Road has raised concerns in the international arena. Certain international political analysts and geo-strategists view this as another attempt of China projecting its great maritime power. Such speculation is a result of a lack of trust and confidence among the countries both in China's immediate and distant neighborhood," he said.

Referring to the importance of the 21st Century Maritime Silk Road, Abeyagoonasekera said that the it is a sleeping giant which will wake up and connect three continents, Asia, Europe & Africa, with trade and culture.

Talking about China-Sri Lanka relations, he said that Sri Lanka 's relations with China date back several centuries. Records on the Han dynasty's missions, which reached several South Asian countries including Sri Lanka, mark the earliest documented evidence of a Sino-Sri Lanka relationship.

"The strategic position of the island in the Indian Ocean made it a hub for ancient trade. Sri Lanka was one of the major ports in the Indian Ocean. It had been one of the prominent places for bartering over goods and the main entry port of the East to West sea route of the Indian Ocean."

Sri Lanka's support to China's 21st Century Maritime Silk Road does not come as a surprise for several reasons, he further explained. Apart from its historical ties, China and Sri Lanka have continued to be steadfast friends since the island gained independence from its colonial rule.

He further said that the two countries have stood for each other at difficult times.

"China has always been supportive of Sri Lanka's decisions and has always respected the island's sovereignty. Today, China is Sri Lanka's largest donor providing financial and technical support for the development of infrastructure, trade and commerce," he said.
 
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I see no valid reason it would not.. All Chinese funded infrastructure projects are going through after preliminary environmental and other clearances since the new govt came to power.. Contrary to false propaganda mainly by India media and analysts and supporters of the defeated Rajapaksa regime
 
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