Tuesday, November 23, 2010

Sri Lanka gains from Indo-Chinese supremacy battle

As India and China jostle for influence in the Indian Ocean region, the island nation of Sri Lanka seems to be getting unintended economic benefits.
China has pledged more financial assistance as Sri Lanka's President Mahinda Rajapaksa visited Shanghai Expo exhibition earlier this month.

China is already the biggest lender for the Indian Ocean island. Sri Lanka's Deputy Minister for Economic Development Lakshman Yapa Abeywardene says that China has, so far, pledged more than $3bn (£1.9bn) for infrastructure development, maintenance and other projects.

"China has been investing in Sri Lanka when many other countries were reluctant to invest during the war," he tells BBC Sinhala service.

China has finished the first phase of the major sea port of Hambantota on the southern Sri Lankan coast - Mr Rajapaksa's hometown - and is funding a new airport in the south. Chinese firms are also rebuilding roads in the north.

Many other projects are already in the pipeline, including handling a Special Economic Zone, a 900 megawatt coal-fired power plant and the Colombo-Katunayake expressway, the road connecting the capital with the island's only international airport.

China is also funding port projects in Chitagong in Bangladesh and in Pakistan and Burma.


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