Sri Lanka turns to Indian companies to counter China's influence
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In a strategic move aimed at offsetting China’s significant presence in Sri Lanka, President Ranil Wickremesinghe’s administration is increasingly fostering collaborations with Indian companies for crucial projects.
The Sri Lankan government recently approved a 20-year power purchase agreement with India’s Adani Green Energy, involving a $442 million investment to establish two wind power stations in Mannar and Pooneryn, totaling 484 megawatts. This decision follows the recent award of management rights for the Mattala Rajapaksa International Airport (MRIA), previously funded by China, to an Indian-Russian joint venture.
India’s influence on key Sri Lankan infrastructure extends beyond power projects. Adani Group, headed by Indian billionaire Gautam Adani, secured a $700 million port terminal project in Colombo in 2021 and is leading a $553 million container terminal project in the same city, supported by the U.S. International Development Finance Corp.
These developments underscore India’s efforts to counterbalance China’s growing influence in South Asia. The MRIA takeover by the Indian-Russian consortium, situated near the Chinese-managed Hambantota Port, amplifies geopolitical tensions in the region.
Analysts highlight the broader implications of these initiatives, emphasizing India’s strategic interests in Sri Lanka amid China’s expanding footprint. However, concerns persist regarding India’s assertive stance and the need for equitable partnerships focusing on technology transfers.
The involvement of India and Russia in revitalizing the Mattala airport signals a significant geopolitical shift, positioning Sri Lanka as a battleground for major powers’ interests. Sri Lanka must capitalize on these investments to maximize benefits and navigate complex geopolitical dynamics.
While India denies direct involvement in project selection, it encourages Indian firms to invest in Sri Lanka. Rohan Masakorala, a maritime expert, stresses the importance of maintaining neutrality and fostering collaboration among global players to promote peaceful trade in the Indian Ocean.
Harsh Vardhan, an aviation expert, highlights Sri Lanka’s strategic significance and vulnerability to China’s debt-trap diplomacy. He underscores the delicate balance required in navigating regional geopolitics, emphasizing the need for collaborative approaches to ensure stability.
As Sri Lanka navigates this geopolitical tightrope, the airport’s development serves as a focal point. However, its impact on broader regional dynamics remains subject to ongoing developments and diplomatic maneuvers among global players.