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India Should Either Come Up With A Better Plan For Sri Lanka Or Send A Thank You Note To China
Panos Mourdoukoutas | MAY 25, 2017
When it comes to Sri Lanka, China has an ambitious agenda. It wants to turn the island nation into a trading and military outpost in the Indian Ocean. And it has a good plan in advancing that agenda, including the shoring up of Sri Lanka’s major ports.
That’s something Sri Lanka and other Indian Ocean countries desperately need, as trade flowing throughout the region has multiplied in recent years.
And it is also a development closely followed by international investors, as they place their bets in the financial markets in the region.
India has an ambitious agenda in Sri Lanka, too. It wants its neighbor to the south to be part of its regional economic, cultural and security universe. But India has no plan to promote this agenda, other than a few celebrated visits by high ranking Indian officials, including a recent visit by Prime Minister Modi.
"China has clearly responded to a strong demand from Indian Ocean countries for better maritime infrastructure and increased connectivity," says Nilanthi Samaranayake, strategic studies analyst, CNA, a non-profit research organization in the Washington area."Some countries see their ports as being too congested or unable to handle larger container ships, so projects by Chinese companies are seen as helping to build or modernize infrastructure and promote wider national development goals."
Like Sri Lanka’s ports of Colombo and Hambantota.
While China is building Sri Lanka’s infrastructure, India is taking a free ride on it, as trade between India and Sri Lanka has been growing in recent years. "Regarding India, it’s important to note that some of China’s maritime infrastructure developments have facilitated India’s trade, such as through the port of Colombo," continues Samaranayake. "Essentially, I am referring to how the Chinese-built terminal (CICT) has helped to reduce congestion at Colombo port and permits deeper draft container ships to call at the port. The figure that is often cited by both Sri Lankan and Indian officials is that roughly 70% of transshipments in Colombo port go to India."
But instead of sending a thank you note to China, India is complaining about Beijing’s presence in Sri Lanka, raising security concerns. "However, despite the commercial benefits of this activity, India is concerned about the strategic implications of China’s increasing commercial and military presence in the Indian Ocean," adds Samaranayake.
Unless India comes up with a better plan for Sri Lanka, it should stop complaining about China’s presence in the island nation, and consider sending a thank you note to China.
Source: Forbes
Panos Mourdoukoutas | MAY 25, 2017
When it comes to Sri Lanka, China has an ambitious agenda. It wants to turn the island nation into a trading and military outpost in the Indian Ocean. And it has a good plan in advancing that agenda, including the shoring up of Sri Lanka’s major ports.
That’s something Sri Lanka and other Indian Ocean countries desperately need, as trade flowing throughout the region has multiplied in recent years.
And it is also a development closely followed by international investors, as they place their bets in the financial markets in the region.
Index/Fund 12-month Performance
IShares China (FXI): 17.64%
Global X MSCI Pakistan (PAK): 28.30%
IShares S&P India 50 (INDY): 17.85%
Source: Yahoo Finance (5/24/2017)
IShares China (FXI): 17.64%
Global X MSCI Pakistan (PAK): 28.30%
IShares S&P India 50 (INDY): 17.85%
Source: Yahoo Finance (5/24/2017)
India has an ambitious agenda in Sri Lanka, too. It wants its neighbor to the south to be part of its regional economic, cultural and security universe. But India has no plan to promote this agenda, other than a few celebrated visits by high ranking Indian officials, including a recent visit by Prime Minister Modi.
"China has clearly responded to a strong demand from Indian Ocean countries for better maritime infrastructure and increased connectivity," says Nilanthi Samaranayake, strategic studies analyst, CNA, a non-profit research organization in the Washington area."Some countries see their ports as being too congested or unable to handle larger container ships, so projects by Chinese companies are seen as helping to build or modernize infrastructure and promote wider national development goals."
Like Sri Lanka’s ports of Colombo and Hambantota.
While China is building Sri Lanka’s infrastructure, India is taking a free ride on it, as trade between India and Sri Lanka has been growing in recent years. "Regarding India, it’s important to note that some of China’s maritime infrastructure developments have facilitated India’s trade, such as through the port of Colombo," continues Samaranayake. "Essentially, I am referring to how the Chinese-built terminal (CICT) has helped to reduce congestion at Colombo port and permits deeper draft container ships to call at the port. The figure that is often cited by both Sri Lankan and Indian officials is that roughly 70% of transshipments in Colombo port go to India."
But instead of sending a thank you note to China, India is complaining about Beijing’s presence in Sri Lanka, raising security concerns. "However, despite the commercial benefits of this activity, India is concerned about the strategic implications of China’s increasing commercial and military presence in the Indian Ocean," adds Samaranayake.
Unless India comes up with a better plan for Sri Lanka, it should stop complaining about China’s presence in the island nation, and consider sending a thank you note to China.
Source: Forbes
