Terrorism in South Asia

https://www.aviation-defence-universe.com/is-china-the-impediment-in-historic-growing-india-sri-lanka-ties/ Is China the impediment in historic & growing India-Sri Lanka ties? By Jai Kumar Verma New Delhi. 9 August 2023. Normally a visit by the neighbour doesn’t raise eyebrows. It is the most expected thing to happen. But the geopolitics of the Indian Ocean region makes heads turn when Indian and Sri Lankan leaders visit each other. Recently when Sri Lankan President Ranil Wickremesinghe came to India on an official visit, all eyes were on New Delhi, all the more so because this was his first visit to India, after a year of coming into power. Needless to say, he met both the Indian President and Prime Minister. Indian Foreign Secretary Vinay Kwatra was in Colombo to do the groundwork before the visit of President Wickremesinghe to India. Indian Foreign Secretary besides meeting his counterpart and Sri Lankan Foreign Minister, also met the Sri Lankan President. Kwatra stated that Sri Lanka is not only an important partner in India’s Neighbourhood policy but also plays a significant role in Vision Sagar. Last year when Sri Lanka encountered its worst economic crisis Delhi under its ‘Neighbourhood First Policy’ assisted Sri Lanka through financial assistance worth $4 billion. India supplied food, medicine, and fuel. The Indian assistance helped Colombo which had the debt of $83 billion out of which 41.5 billion was foreign debt. According to an important think tank Chinese share is about 20 percent of total foreign debt. China is Sri Lanka’s biggest bilateral creditor. India was the first creditor which gave letter of support to Colombo about restructuring of loan which helped the island nation in getting a package of $3 billion from International Monetary Fund. India is member of an official creditor’s committee with Japan. Delhi is also trying to help Colombo through Paris Club, which includes major creditor countries. These countries co-ordinate and try to evolve workable solutions for the countries which are facing economic crisis. China, Japan, and India are three major money lenders to Sri Lanka. India is an important creditor, and its outstanding loan is $1.9 billion. But the story doesn’t end here. After India, President Wickremesinghe is all set to make his maiden visit post becoming the President to China also in October. The Chinese Foreign Minister is scheduled to lead a mission to Sri Lanka prior to the President's visit. In addition to considering prospective new projects, the visiting Chinese group was anticipated to assess the highway project, the proposed projects for the Colombo Port Financial City, and the investments near the Hambantota area. After highlighting the advancements made with the Domestic Debt Optimisation (DDO) program, Foreign Minister Ali Sabry told the media during his recent visit to China that he also discussed re-negotiating debt repayment with China's Exim Bank. Last year India’s financial assistance to Sri Lanka was crucial as at that time Colombo exhausted its dollars and it was difficult for the country to import essential items like fuel, medicines etc. Prime Minister Modi mentioned that “The past one year has been full of challenges for the people of Sri Lanka. Being a close friend, as always, we stand shoulder-to-shoulder with the people of Sri Lanka”. Both the countries are determined to enhance the bilateral ties on multiple fields including power, trade, higher education, energy, and people to people contact. Sri Lanka is very keen that Indian tourists visit the island country. Tourism is an important foreign exchange earner for the country and tourist industry suffered badly due to Covid pandemic and at present it is suffering because of Russian Ukraine war. Both countries gave emphasis on increasing maritime and air connectivity. Both Delhi and Colombo would also work to connect their electricity grids and would also assess the practicality of constructing a petroleum pipeline between both the countries. The construction of the pipeline would be an expensive affair but supply of oil or gas through pipeline is more reliable as well as less costly. India is also agreeable to invest more in Trincomalee as India wants to make it a trade centre. Both countries would increase passenger ferry service, number of flights would also be enhanced. Efforts would also be made to construct a land bridge across the Palk Strait between Tamil Nadu (India) and Jaffna district which is the Northern province of Sri Lanka. At few places in Palk Strait the distance between both the countries is only about 50 K. Ms or less. If the ‘land connectivity’ is established, then India would get easy access to Colombo and Trincomalee ports. The power grids would be connected through undersea cables and the estimated expenditure would be $ 4 billion. The visiting president is ready to accept rupee for bilateral trade as well as to use United Payments Interface (UPI). India and Sri Lanka would also negotiate to enhance Economic and Technological Cooperation and signed multiple agreements pertaining to energy, renewable energy, and trade developments. Sri Lankan President’s visit is also an indication that Sri Lanka appreciates the assistance rendered by India last year when the country was passing from a difficult financial crisis. The Sri Lankan watchers feel that Colombo would need India’s assistance to boost its economy, retune its bureaucracy and decision-making methods. The visiting President also agreed to execute an India supported scheme under which Sri Lankan Tamil population would share power with Sinhalese majority community. Rajapaksa’s delegation also included two Tamil ministers. Modi stated that “We hope that the government of Sri Lanka will fulfil the aspirations of the Tamils.” India and Sri Lanka have old and traditional cordial relations, nevertheless China in view of Sri Lanka’s strategic location in the Indian Ocean, enhanced its influence on the island nation. Not only this China which considers India as its potential adversary also tries to encircle India. China with its deep pockets gave loan to Sri Lanka on the name of developing the infrastructure. Large amount of loan on the name of infrastructure development gave an advantage to China over India. However, Beijing gives loan on stringent terms, and it becomes difficult for the developing nations to repay the loan. Sri Lanka became victim of Chinese debt trap and its economy collapsed although Chinese loan was not the only reason, but it also contributed in the collapse of Sri Lanka’s economy. Colombo is passing through a difficult economic watershed and unfortunately Sri Lankans are leaving the country. 150 thousand Sri Lankans have already left, and it is expected that about 300 thousand people would leave the island nation this year. Hence there would be dearth of skilled workers and the brain drain would make early economic recovery difficult. Nonetheless, Sri Lanka is under pressure of Chinese debt cannot speak against Beijing. Recently Sri Lankan Foreign Minister Ali Sabry stated in an interview given to South China Morning Post that Sri Lanka will not take any country’s side and will also not harm any country. He made it clear that Sri Lanka would be neutral. He mentioned in the interview that “We want India and China to talk to each other and resolve their differences and that will be better for both countries, better for the world,”. President Wickremesinghe also mentioned that Sri Lanka would be neutral between India and China. It would be good for China but for India which has close cultural, religious, and ethnic relations from ages it is a relegation from its position. All other creditors agreed to negotiate jointly to reschedule Sri Lanka’s debt but China which has a share of about 20% of Sri Lanka’s debt stated that it would negotiate its loan with Colombo bilaterally. It gives an advantage to China. Last time Colombo had to surrender Hambantota port to China. Modi in his speech mentioned that security is a major worry of India. He also mentioned that security and development are linked to each other, but Wickremesinghe not mentioned anything about security in his speech. He emphasised on economic and bilateral relations. India cannot stop China as it has deep pockets and Sri Lanka needs investments, rescheduling of its debt and loan from IMF. China is biggest lender and is in position to invest more money in island nation. Although now India is also investing in Sri Lanka in developing infrastructure & energy but first of all it is not enough and secondly it would take more time. Hence Colombo would, not abandon China but India has numerous important points in its favour which China does not have. India’s people to people contact is much stronger, India has cultural as well as religious ties. India should exploit these favourable points. Besides it, Indian economy is growing at a much faster pace than China. Chinese local governments are under heavy debt and these local bodies are not in a position to repay the debt. Few local bodies have forged documents to show that they are economically strong. Several countries took loan from China but now they are not in a position to repay the debt these countries want to reschedule the loan. Not only this Japan, South Korea, India, Vietnam, and United States are realising the aggressive behaviour and expansionist tendencies of China hence these countries are trying to reduce its trade with China. Hence it may be possible that Beijing may not be able to invest much more in Sri Lanka. In its economic debacle Colombo must have realised the difference in the approach of India and China. India helped Colombo as a true well wisher while China wanted to exploit the situation. (Jai Kumar Verma is a Delhi-based strategic analyst and member of United Services Institute of India and Institute for Defence Studies and Analyses. The views in the article are solely the author’s. He can be contacted at editor.adu@gmail.com)

 Sri Lanka 

 

 

 

 Aviation & Defence Universe

WE JUST REPORT FACTS, WE DO NOT CHANGE THEM

https://www.aviation-defence-universe.com/is-sri-lanka-slid-in-chinese-debt-trap-for-fulfilling-its-prosperity-dream/#.YmZXiMF7Zi4.gmail

Is Sri Lanka slid in Chinese debt trap for fulfilling its prosperity dream?

By Jai Kumar Verma

New Delhi. 23 April 2022. It was a political Tsunami which swept Sri Lanka recently. Gotabaya Rajapaksa President of Sri Lanka lost his parliamentary majority and there were massive demonstrations in whole of country. He was taken by surprise when opposition political parties on his request to form a joint government, decided not to do so. It was on his request that the members of cabinet had resigned in the anticipation that all parties would get together and form the government at this time of crisis and the nation would be in unison.

The Author

The entire Sri Lankan cabinet except President and Prime Minister have resigned on 3rd April to pacify the agitators. Now the president may appoint a new cabinet which may include few new faces while few old faces might continue. In view of the stiff resistance the government has lifted the restrictions on social media.

The Rajapaksa government has also lost majority as few political parties which were part of coalition, withdrew their support to the government. The anti-government demonstrations are continuing. The dissolution of cabinet and appointment of new finance minister was of no use as newly appointed finance minister resigned and stated that, hard and unconventional methods are required to improve the economy.

The President evoked a 36 hours long curfew and unlocked the social media, as violent protests occurred at several places including in front of his residence. The demonstrators shouted slogans and demanded the resignation of President Rajapaksa as the country is facing its worst economic crisis. Police used water cannons, fired tear gas shells, and resorted to lathi charge in which several agitators were injured. The demonstrators burned vehicles and pelted stones in which several policemen were also injured.

There is acute shortage of foreign exchange and because of it there are 13 hours power cuts, scarcity of essential items including medicines, POL products, cooking gas and other food items. The curfew was imposed to silence the protests but the agitators defied the curfew and came on streets. The army was called out and the security forces arrested more than 650 persons for violating the curfew. The three days curfew was imposed as public emergency declared on 1 April became ineffective.

A grip too strong

Sri Lankan citizens are confronting the double whammy which included price rise and soaring debt. The economists claim that the economic situation worsened because of mismanagement by successive governments which created a twin deficits in economy. It means that country’s expenditure is more than its income and it produces less tradable goods and services. Rajapaksa government adopted unreasonable tax cuts because of his poll promises and took excessive debts and loans. The economy was further shattered because of COVID-19 pandemic. The tourism industry was in doldrums and foreign workers remittances were also considerably decreased. The credit rating agencies downgraded Sri Lanka which reduced the foreign investments. Because of these factors the foreign exchange reserve dwindled by almost 70 percent in two years.

The government’s decision to switch on to organic farming and banning all chemical fertilisers in 2021 reduced the farm production considerably. Although this decision was reversed later but it harmed the farm sector, lessened the rice production, damaged the economy, and reduced the availability of food stuff.

The foreign exchange reserve of the country reduced to $2.31 billion in February 2022 while Colombo’s debt repayment was about $7 billion in 2022. It includes $ 1 billion international sovereign bond (ISB) which would mature in July this year. The International Monetary Fund (IMF) issued a review of Sri Lanka’s economy in March 2022. The review mentioned that the public debt has increased to “unsustainable levels” and foreign exchange is not enough to repay the debts. Citi Research also claimed that the debt needs to be restructured as Colombo is in no position to repay it in near future.

China within Srilanka

Sri Lankan president also approached India and China for assistance. India sent a diesel shipment under $ 500 million credit line. Both India and Sri Lanka also signed a $ 1 billion credit line under which Sri Lanka can import essential items including medicines, food etc. from India.

Sri Lankan government-initiated negotiations with IMF from 14 March for assistance. Previously Colombo was reluctant to get IMF assistance because IMF renders assistance only after stringent economic reforms but when it could not get assistance from other countries due to Russia-Ukraine war the island nation was forced to approach IMF.

In January this year Rajapaksa requested the 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.” But China which played a vital role in the economic disaster of the island nation refused to restructure the debt payment and Wang Wenbin Foreign Ministry spokesman stated that “Sri Lanka will surely overcome the temporary difficulties as soon as possible”.

In October 2021 China exported highly contaminated organic fertiliser to Sri Lanka, nevertheless it was detected and cancelled by Colombo. Later India supplied the fertiliser. The contaminated fertiliser would have damaged the crop. Sri Lanka is trying to distance itself from China as it is realising that Beijing has laid the debt trap and it is becoming difficult for the island nation to repay. In past China has taken over strategic Hambantota port as Colombo was unable to repay the debt. In April 2021 China accounted for approximately 10 percent of Sri Lanka’s $35 billion foreign debt. Nevertheless, the real Chinese debt is much more as Beijing has also given loan to Central Bank and state-owned companies.

China gave debt to Sri Lanka on the name of development of infrastructure, few infrastructure projects are not of much use and not earning projected revenue. The other developing nations in Asia and Africa should take a lesson from Sri Lanka and Pakistan. Both countries are facing economic catastrophe and finding it difficult to repay the Chinese loan and most of the time Beijing refuses to reschedule the loan.

Strong Srilankan-Indian Military Ties

China watchers claim that Beijing extends loan after loan on stringent terms on overpriced projects which are not commercially viable and when the developing country is unable to repay the loan, China occupies these projects.
Sri Lanka is suffering because of heavy borrowing from China. The China watchers claim that the terms and conditions of the contract are usually not made public and generally they have stringent terms for repayment. Chinese Belt and Road Initiative (BRI) is a debt-trap and Colombo has already lost Hambantota port and other important project under BRI; Colombo Port City is also increasing Chinese debt.

China played a major role in the economic debacle of Sri Lanka but refused to reschedule the debt payment, now Colombo is seeking assistance from India and New Delhi should not miss this opportunity and should try to inculcate close relations with the island nation. Colombo is keen to have intelligence about human trafficking and drug smuggling. India with strong intelligence network should provide intelligence not only on human trafficking and drug smuggling but also on terrorism.

India- Srilanka’s friend in Need

India under its Neighbourhood First Policy rendered assistance to Sri Lanka and besides sending POL and extending loan, India also agreed to construct three power projects in Islands of Jaffna. Both countries would set up a Maritime Coordination Centre (MRCC) and India would help in developing fisheries harbours in Point Pedro, Pesalai, and Gurunagar besides other projects. Both sides have also agreed to enhance defence cooperation so that the security can be provided to important commercial sea lanes.

Once this current political crisis is solved and the country stabilises, Rajapaksa government should adopt few measures including emphasis should be given on local manufacturing instead of import, corruption should be eliminated and government expenditure should be minimised. Several China assisted projects which are high on debt servicing and low in income generation should be abandoned. Agricultural production should be increased by using fertilisers and as Covid-19 pandemic is reduced the tourism industry should be strengthened. Sri Lanka should reinforce its traditional indigenous medicinal system which is called “Hela Wedakama” as the country has shortage of modern medicines. The island nation can take help of Indian pharmaceutical companies to establish plants in the country. India should also be careful as there would be exodus of people and large number of refugees would come to India if the economic and law and order situation is not improved in Sri Lanka urgently. And last but not the least Srilanka should introspect its leanings and friendships. Probably it is unable to identify long-term relationships and friends in need from short term associations and friends who are not indeed.

(Jai Kumar Verma is a Delhi-based strategic analyst and member of United Services Institute of India and Institute for Defence Studies and Analyses. The views in the article are solely the author’s. He can be contacted at editor.adu@gmail.com)

Aviation & Defence Universe

WE JUST REPORT FACTS, WE DO NOT CHANGE THEM

https://www.aviation-defence-universe.com/is-china-trying-to-convert-sri-lanka-into-its-overseas-colony/#.YLJEwKULT9U.whatsapp

Is China trying to convert Sri Lanka into Its overseas colony?

Columbo Port

By Jai Kumar Verma

New Delhi. 28 May 2021. The contentious Port City Bill was passed by Sri Lankan Parliament on 20th May 2021. The bill cleared the first Special Economic Zone (SEZ) which consists of 269 hectares of reclaimed land which is contiguous to Colombo, the capital of the country. The SEZ which will be powered by renewable energy, will have mostly services-intensive industries. It is part of Belt and Road Initiative (BRI) which is a global infrastructure development strategy of Chinese President Xi Jinping and was initiated in 2013. 

The enactment mentions that Mahinda Rajapaksa the Prime Minister would constitute a special commission which will administer the SEZ. The commission will be empowered to sanction licenses, registrations and to start any type of business in SEZ permission from the commission will be required. The commission would also fix the custom duty, value-added tax (VAT) or any other type of taxation or its exemption. It will also decide about opening of gambling places and casinos. In reality the commission will be empowered to take all decisions about the SEZ. Chinese would be getting concessions which were not given even to Sri Lankan businessmen. The audit and accounts department will not be authorised to do the audit of SEZ, but audit would be done by private auditors hence parliament will have no control over the SEZ. Prime Minister will be authorised to select and dismiss the members of the commission.  

The work on Port City SEZ was started when Rajapaksa was the president of Sri Lanka. The Hambantota port, which was leased to China in July 2017 as Sri Lanka could not repay the debt given by China, is in the constituency of Mahinda Rajapaksa. All the businesses in the Colombo Port City would be transacted in recognised foreign currency.

Columbo Port City

On April 8, the Port City Bill was put forward in Parliament but there was unprecedented opposition to the bill and about 19 petitions were filed in Supreme Court against the bill. The bill which will exempt the SEZ from the local laws was severely criticised by labour unions, civil society, advocates, monks, and opposition parties particularly United National Party (UNP), the Janatha Vimukthi Peramuna (JVP). Anura Kumara Dissanayake an important leader of JVP declared that Sri Lanka will be reduced to a “Chinese province” because of the bill. In the Colombo Port City Sri Lankan laws will not be effective. Former Sri Lankan President Chandrika Bandaranaike Kumaratunga also mentioned that Sri Lanka will become ‘colony of China’ and the people who resisted Colombo Port’s Eastern Container Terminal’s (ECT) construction by India and Japan are not hostile to Chinese Colombo Port City. 

The petitioners claimed in the supreme court that the provisions of Chinese controlled SEZ are against the Sri Lankan constitution, sovereignty, and labour laws hence it should be declared null and void. The decision of the apex court was put forward before the parliament on 25 May 2021 which declared that on several points either the bill required to be passed by a two-thirds majority or it needed referendum. It also mentioned that if requisite amendments are made in the clauses which are contrary to the constitution the bill can be passed by simple majority in parliament.

The opposition wanted three days debate in parliament, but government allowed two days debate and afterwards the bill was amended in consultation with supreme court and was passed by majority vote.

President Gotabaya Rajapaksha while defending the bill stated in the parliament that the Port City Project would generate more than 200,000 jobs in five years and most of these jobs will be given to Sri Lankans. He also claimed that the Colombo Port City would attract foreign direct investment as it will become a big financial and services centre in South Asia.

Yamuna Jayaratne Colombo Port City Director of Sales and Marketing stated that so far Sri Lanka has not exploited its geographical and locational advantages which are more than Dubai and Hong Kong which already emerged as financial services hubs.

A handshake which is shaking the region

The bill was defended by several politicians of the ruling party including Minister of Higher Education and Cultural Affairs Wijeyadasa Rajapksa, Agriculture Minister Mahindananda Aluthugame as well as by former Central Bank Governor Ajith Nivard Cabraal. They mentioned that Colombo Port City will be very useful for the country and it will create large number of jobs and SEZ is under the security cover of Sri Lankan police and security forces. They also claimed that several persons are criticising the project on behest of foreign powers. 

This seems to be a continuation of Hambantota Port which was taken by China on a 99-year lease for $ 1.2 billion.  China lays debt trap through massive infrastructure loan which the developing countries fail to repay. On the other hand, India because of destructive second wave of Covid-19 had to downturn its assistance to Sri Lanka. New Delhi also had to defer its ‘Vaccine-Maitri’ because of shortage of vaccines in the country. India is concerned as Port City of Colombo will become an overseas colony of China and its influence would be enhanced manifold. Beijing has increased its efforts of encircling India after it became member of ‘Quad’ and the Chinese People’s Liberation Army (PLA) and Indian army are not only facing each other but also involved in battles in eastern Ladakh and other places.  

Sri Lanka on behest of China cancelled a trilateral deal between India Japan and Sri Lanka to develop the East Container Terminal of the Colombo Port. The present government changed the terms and conditions of the U.S. investment of $ 450 million in Sri Lanka. The present government has also annulled an agreement with Indian Oil Corporation.  Although India gave a $400-million currency swap to island nation but the talks for another $ 1 billion currency swap agreement could not be materialised.

Hambantota port

Sri Lanka watchers claim that at present because of Covid 19 pandemic the economic condition of Sri Lanka is considerably deteriorated hence President Gotabaya who has close relations with China wants to improve it through Chinese investment. President Xi Jinping wants to increase Chinese influence in the area is taking advantage of the situation.

China is also making headway in the areas of Indian dominance including rubber, tea, and coconut plantation with malafide intention of striking out India. Chinese are also constructed 40,000 houses in Jaffna district which is a Tamil dominated area. Gotabaya, also feels that in case Tamil insurgency develops again it can be suppressed with Chinese assistance.

Both countries have defence relationship also and China supplied different types of arms and ammunition to the island nation. Sri Lanka got anti-tank guided missiles, shoulder-fired surface-to-air missiles, rocket launchers, radars, and different types of communication equipment from China. China is not only training Sri Lankan defence personnel but also modernising its armed forces. In 2019 Sri Lankan ambassador in UN also signed a joint letter with other countries and sent it to The United Nations Human Rights Council (UNHRC) shielding Chinese atrocities on Uyghur Muslims.

India is genuinely concerned because of increasing Chinese influence in the region. Hambantota and Colombo are less than 300 miles from India. Pakistan is under full influence of China and after the coup in Myanmar and imposition of sanctions by several countries Chinese influence has increased multiple times in the country. The present Oli government in Nepal is getting full support from China and Prime Minister Oli has already acted against Indian interests and issued several anti-India statements. Although Bangladesh Prime Minister Sheikh Hasina has cordial relations with India, but she is also leaning towards Beijing. Recently Chinese ambassador in Bangladesh warned Dacca that it should not join US led Quad alliance as it would damage to the bilateral relations of both the countries.

Courtesy: scmp.com

In view of Chinese aggressive stratagem Indian strategist has to plan a long-term strategy although it is difficult to counter China which has deep pockets. Chinese economy is approximately five times larger than India and more or less no vibrant opposition in the country. Indian diplomatic missions in the neighbouring countries should try to convince the masses that China is an expansionist country, and it would grab their areas. The diplomatic missions in other countries should also put Indian viewpoints more forcefully. Quad is a good initiative and there are several countries including U.S., Japan, Vietnam, Australia, Germany, U.K., Canada, Sweden, Norway, and others which are under pressure because of phenomenal economic rise of China. The democratic countries also condemn China for human right violations.  India can try to be friendly with them although the help from these countries will be extremely limited. India is also concerned as China is encircling India by increasing its influence in Sri Lanka, Pakistan, Tibet, Myanmar, Bangladesh, and Nepal.

(Jai Kumar Verma is a Delhi-based strategic analyst and member of United Services Institute of India and Institute for Defence Studies and Analyses. The views in the article are solely the author’s. He can be contacted at editor.adu@gmail.com)

 Raksha ANIRVEDA

www.raksha-anirveda 

https://www.raksha-anirveda.com/the-new-cpcec-bill-may-convert-sri-lanka-into-a-chinese-colony/

The New CPCEC Bill May Convert Sri Lanka into a Chinese Colony

The growing opposition to the Colombo Port City Economic Commission (CPCEC) bill brings to the centre stage the ulterior motives of China. India as well as its neighbours should be careful and alert

May 1, 2021EditorOpinion

Jai Kumar Verma

Awide array of people including civil society workers, advocates, monks, opposition political parties including United National Party (UNP), the Janatha Vimukthi Peramuna (JVP), trade Unions and many others have filed multiple petitions in the Supreme Court of Sri Lanka against the bill captioned as Colombo Port City Economic Commission (CPCEC). The petitioners claimed that CPCEC contravenes constitution, labour rights and is against the sovereignty of the country. The petitioners asserted that the sovereignty of the country is under threat because of the extra ordinary powers given to the commission for the construction of Colombo Port City Project.

The proposed law stipulates to create a commission which would grant registrations, licenses, and any type of approval to conduct business in the special economic zone (SEZ) which would be created by the proposed law. The commission would also decide about the custom duty, taxation or its exemption, value-added tax (VAT), or decisions about casinos, gambling etc. The CPCEC would be authorised to take all decisions pertaining to SEZ.

The petitioners claimed that the Port City Commission would be against the territorial integrity and sovereignty of the country. They also mentioned that the concessions Chinese will be getting under the proposed law were neither given to the Sri Lankan nor to any other foreign business persons although they are in the business from several years and had better commitment. The proposed law also provides that the private auditors would audit the accounts and the auditor general will not be authorised to audit the accounts. In this way parliament would not have any control on CPCEC. The proposed bill also authorises president to nominate as well as sack the members of the commission.

The CPCEC would take off all powers of the parliament and mentions that all investment should be in foreign currency, and the disputes would be solved through arbitration and not by the courts. The activists claim that these provisions would finish the sovereignty of the country and would reduce Sri Lanka into a Chinese colony

The petitioners demanded that the CPCEC should be passed by a two-thirds majority from parliament and also through a referendum before it becomes the law. The CPCEC would take off all powers of the parliament and mentions that all investment should be in foreign currency, and the disputes would be solved through arbitration and not by the courts. The activists claim that these provisions would finish the sovereignty of the country and would reduce Sri Lanka into a Chinese colony.

Chinese port city project which commenced in 2014 was propagated by President Mahinda Rajapaksa as an investment centre to attract the foreign capital. The three kilometres financial centre is on reclaimed sea land at Galle Face seafront in middle of Colombo city. The project was initially suspended by Rajapaksa’s successor Sirisena, but later work commenced, and it was complete in 2018. The estimated cost of the project in 2017 was USD 15 billion and is part of Belt and Road Initiative (BRI).

The Sri Lankan people are concerned about the hefty loan given by China. In past Colombo failed to repay the debt and it had to surrender Hambantota port to China in 2017 in lieu of USD 1.2 billion for a 99-year lease. According to Sri Lankan law, all new bills have to be cleared by Supreme Court hence Jayantha Jayasuriya the Chief Justice of Supreme Court has appointed a 5-member bench to hear the petition. Chief Justice will head the bench.

After losing Hambantota, the intellectuals in Sri Lanka are becoming suspicious of Chinese intentions, hence the Chinese project – Colombo Port City (CPP) special economic zone (SEZ) is in controversy from the beginning. In Sri Lanka, the civil society is powerful and continuously work to slash the powers of executive president.

The opposition parties including Samagi Jana Balawegaya (SJB) and United National Party (UNP) though in favour of Colombo Port City project are against the proposed bill. Opposition leader Sajith Premadasa while criticising the bill stated that the bill if passed will make the country subservient to foreigners. Another SJB leader Lakshman Kiriella pointed out that if this bill is passed then 25 laws passed by the parliament will not be applicable on the SEZ which will become a safe haven for money laundering.

Anura Kumara Dissanayake leader of Janatha Vimukthi Peramuna (JVP) stated that if the proposed bill passed, Sri Lanka will be reduced to a “Chinese province”. He also mentioned that local businessmen would not be allowed to function in the Port City which may become a separate region where the local laws would not be applicable. Chandrika Bandaranaike Kumaratunga former Sri Lankan President also remarked that Sri Lanka is becoming the ‘colony of China’ and stated that the people and parties who opposed the Colombo Port’s Eastern Container Terminal (ECT) with India are not opposing the present contract with China.

China and Sri Lanka have close military relationship and China sold several state-of-the-art weapons to Sri Lanka including rocket launchers, shoulder-fired surface-to-air missiles, anti-tank guided missiles, deep penetration bombs and rockets, mortars, security equipment, tanks, jets, naval vessels, radars, and communication equipment.

Wijeyadasa Rajapksa, Minister of Higher Education and Cultural Affairs, Agriculture Minister Mahindananda Aluthugame, former Central Bank Governor Ajith Nivard Cabraal and others defended the bill and mentioned that the people are criticising the bill on behest of foreign powers. Sri Lankans will get jobs in the SEZ and the local police has full jurisdiction on SEZ.

President Gotabaya Rajapaksha has close ties with China, and recently he talked to Chinese President Xi Jinping, where both leaders consented to augment bilateral ties to recover from the current pandemic. The Gotabaya government had changed the Memorandum of Understanding (MoU) signed by his predecessor with U.S. on the investment of US$ 450 million. Not only this Gotabaya also revoked East Container Terminal (ECT) agreement in which besides India Japan was also a partner. The ECT was cancelled as there were protests by labour unions and Sinhala nationalists headed by monks. Same groups and many others are now opposing CPP, but the government instead of scrapping it, is defending the same. Sri Lanka also cancelled a deal with Indian Oil Corporation (IOC) pertaining to oil storage tanks.

Even if supreme court clears it after some changes and government passes it after some amendments the government would have to convince the masses that the SEZ would provide them employment because Chinese bring people from China to complete the projects. Government scrapped U.S., India, and Japanese projects where the locals get the employment. In Hambantota only Chinese were benefitted.

Besides capturing strategic areas in the region China which considers India as its prospective adversary is also encircling India. The Baloch nationalists claim that China has already occupied Gwadar Port, would exploit the vast mineral resources of Balochistan and water resources and arable land of Gilgit and Baltistan

China is spreading its wings in the areas like tea, rubber, and coconut plantation etc. where India was dominating. Recently China Railway Beijing Engineering Group Co. Ltd got contract to build 40,000 houses in Jaffna district.

China and Sri Lanka have close military relationship and China sold several state-of-the-art weapons to Sri Lanka including rocket launchers, shoulder-fired surface-to-air missiles, anti-tank guided missiles, deep penetration bombs and rockets, mortars, security equipment, tanks, jets, naval vessels, radars, and communication equipment. China is also modernizing Sri Lankan armed force and training its military personnel. In July 2019 Sri Lankan ambassador in UN signed a joint letter along with 50 other nations sent to UNHRC defending the Chinese treatment of Muslims including Uyghurs.

The strategic analysts claim that China allures financially weak countries to develop massive infrastructure and for that China provides loan, men, and material to construct the infrastructure. The infrastructure is so expensive and hidden terms of loan are so stringent that these countries fail to repay the loan and then China occupies these assets. As China brings men and material from China hence these projects do not generate employment and do not improve the financial conditions of the financially weaker countries. The debt repayment became more difficult due to Covid-19 pandemic. China’s is fulfilling this strategy through Belt and Road Initiative (BRI).

Besides capturing strategic areas in the region China which considers India as its prospective adversary is also encircling India. The Baloch nationalists claim that China has already occupied Gwadar Port, would exploit the vast mineral resources of Balochistan and water resources and arable land of Gilgit and Baltistan. The analysts claim that Beijing would exploit Pakistan through China Pakistan Economic Corridor (CPEC) and Pakistan cannot resist because of its feeble financial condition. The influence of China is constantly increasing in Nepal and pro-China elements are spreading anti-India sentiments. Hence India as well as its smaller neighbours should be careful about the ulterior motive of China.

(The writer is a Delhi-based strategic analyst and member of United Services Institute of India and Institute for Defence Studies and Analyses. The views in the article are solely of the author.)

Imran Khan’s Visit To Sri Lanka Petered To Routine Diplomacy

 

Photo by Ishara S. KODIKARA / AFP)

• He was neither allowed to raise issues of Muslim minority nor could address the Parliament  

By Jai Kumar Verma

The Author

New Delhi. 04 March 2021. Pakistan Prime Minister Imran Khan Niazi paid a two day visit to Si Lanka recently. The visiting Prime Minister was received by Sri Lankan Prime Minister Mahinda Rajapaksa at the Bandaranaike International Airport Colombo and was also presented a guard of honour. However, if the ceremonial warm welcome and fanfare is separated, there was not much concrete in the visit to please Imran Khan as well as to the Pakistani public.

The scheduled address of Sri Lankan Parliament by Imran Khan was unexpectedly cancelled on the flimsy ground of spread of COVID-19. According to reports Khan’s address to parliament was included in his itinerary on the request of Pakistan government and Sri Lanka government back-pedalled its decision. Sri Lankan government officially mentioned that the parliament address was cancelled because of ‘scheduling issues’ as well as to safeguard with corona pandemic. Nevertheless, according to reports some influential people in Sri Lankan government were opposed to Imran Khan’s address to Sri Lankan Parliament as they speculated that Khan would raise Kashmir issue in his address, and it will further strain India Sri Lanka relations. The relations between India and Sri Lanka are already tense because Sri Lanka has unilaterally terminated a 2019 contract with India and Japan to develop the strategic East Container Terminal in Colombo port. Sri Lankan government does not want strained relations with India as at present it is falling under Chinese debt-trap while India’s prestige is enhancing in world because of it successful dissemination of COVID-19 vaccines.

Sri Lankan was also apprehensive that Khan may raise the issue of ill-treatment of Muslim minority in Sri Lanka. At present Sri Lanka is already facing a controversy about forced cremations of Muslims who die because of COVID-19. Amnesty International and other human right groups are already opposing the forced cremations. In fact, Amnesty International wrote a letter to Imran Khan to raise the issue of forced cremations of Muslims at the highest level during his visit. Sometimes back Sri Lankan Prime Minister Mahinda Rajapaksa stated in parliament that burials would be allowed to Muslims soon, but the announcement could not be implemented because of stringent opposition by majority Buddhists.

Imran Khan congratulated Sri Lanka for this decision as he is also under pressure from fundamentalists in Pakistan to raise this issue during his tour to Sri Lanka. The Islamic world is also outraged because of forced cremations of Muslims and is extremely critical of Sri Lanka and consider it as the blatant persecution of Muslims who are more than 10 percent of the Sri Lankan population. First Sri Lankan government had not allowed 15 Muslim Sri Lankan parliamentarians to meet Imran Khan under the pretext of security as it would have infuriated majority Buddhists, however later the Muslim parliamentarians met Imran Khan and they demanded that government should restore the burial of Muslims. Khan also met Sri Lankan President Gotabaya Rajapaksa and held extensive discussion on bilateral relations.

There were also communal riots between Muslims and Christians as well as between Muslims and Buddhists after the Easter suicide bombings in April 2019 in which about 269 persons including eight suicide bombers were killed.

Pakistan Foreign Minister Shah Mahmood Qureshi also accompanied the Prime Minister in the visit. Pakistan is the second largest trading partner of Sri Lanka after India hence a large trade and commercial delegation also accompanied Khan. Both the countries also agreed to revive a joint Working Group (JWG) so that the technical issues can be resolved amicably. Both countries inked a free trade agreement in 2005. Pakistan is projecting its ancient Buddhist connections so that cultural ties with Sri Lanka are strengthened and religious tourism enhances.

Besides trade ties the defence relationship between both the countries is much stronger. Pakistan helped Sri Lanka when its forces were fighting with the Liberation Tiges of Tamil Eelam (LTTE) a separatist group which was fighting for an independent country for Tamils in North Eastern Sri Lanka. Although India shared intelligence with Sri Lanka but refused to supply arms and ammunition, nevertheless Pakistan took advantage of the situation and supplied not only weapons and ammunition but also gave training to Sri Lankan forces including fighter pilots. Sri Lankan defence secretary also visited Pakistan in 2008 and requested for supply of armaments.

According to unconfirmed reports Pakistani Air Force pilots also helped Sri Lankan Air Force. Sri Lankan defence officers are also getting training in Pakistan military academies. Sri Lankan naval officers also took part in multinational maritime exercise Aman 2021 held in Pakistan in February 2021. The defence ties between both the counties are so strong that Pakistan’s High Commissioner in Sri Lanka and Sri Lankan envoy in Pakistan were mostly former military officers. During 1971 Sri Lanka over-ruled India’s objection and allowed Pakistani Air Force planes to refuel its planes in Sri Lanka.

Imran Khan also announced a new $ 50 million defence line of credit (LOC) facility for Sri Lanka to increase its defence capabilities. Both the countries also agreed to share intelligence so to fight terrorism, drug trafficking and organised crime. Imran Khan also highlighted the importance of China Pakistan Economic Corridor (CPEC) and mentioned that it will enhance trade and connectivity. He also mentioned that One Belt and Road Initiative (BRI) would augment Sri Lanka’s connectivity up to Central Asia.    

It appears that the visiting prime minister was briefed not to speak anything about the maltreatment of Muslims in Sri Lanka. The official press releases of both the countries have not mentioned anything about Sri Lankan Muslims however Rajapaksa twitted that Sri Lanka “is grateful to Pakistan for agreeing to open the pilgrimage corridors for Sri Lankans to visit ancient Buddhist heritage sites in Pakistan.”  

At present Colombo also needs friends at Geneva so that the United Nations Human Rights Commission’s resolution 30/1 of September 2015 about the investigation of committing of the war crimes by Sri Lankan authorities, can be withdrawn. Colombo wants the help from Pakistan but does not want to lose India’s support hence it gave a red-carpet welcome to Imran Khan but not allowed to speak against India.

Imran Khan in view of cordial relations with Colombo had not spoken in favour of Sri Lankan Muslims. Same way no leader of Pakistan including Imran Khan speak in favour of Uighur Muslims although U.S. and Western world is criticising and condemning China for the blatant human right violations by Chinese security forces.

India permitted Khan’s airplane to fly over India’s airspace while in 2019 Pakistan refused permission to Prime Minister Narendra Modi’s aircraft to use its airspace.

Now India should be careful about the triangulation between China, Pakistan, and Sri Lanka. Out of these first two are India’s sworn enemy and will like to win over Colombo in their side too. Imran Khan also visited Kabul in November 2020 which was his first visit to Afghanistan after he assumed the office of Prime Minister two years back although Afghan President Ashraf Ghani visited Pakistan several times. The possibility that Khan is trying to make friends which can be later used against India cannot be ruled out.

Khan appreciated CPEC as well as BRI in Sri Lanka although several projects of CPEC are in trouble and there is lot of resentment about CPEC in Pakistan. It may be possible that Khan was briefed by Chinese to appreciate CPEC and BRI in Sri Lanka.  

 (Jai Kumar Verma is a Delhi-based strategic analyst and member of United Services Institute of India and Institute for Defence Studies and Analyses. The views in the article are solely the author’s. He can be contacted at editor.adu@gmail.com)