• The Chinese presence in Sri Lanka is a classic example

of ‘neo-colonialism’. China is famous for doing

‘unequal treaties’ under the shadow of investment
but it is seen that these investments are aimed at
controlling the territories and governments.
• Lanka’s clampdown on the Tamil rebels in its northern
What is China territory isolated Colombo internationally. With the
international support dwindling, China came forward
doing in Sri and provided financial help, including loans to Sri
Lanka.
Lanka? • Beijing has always lent its shoulder diplomatically,
militarily and financially to Colombo on various issues,
especially by defending Sri Lanka on charges of human
rights violations against it. In exchange, Sri Lanka
opened its investment corridors for China so that it
can enhance its influence in the South Asian region.
• Ever since Xi Jinping came to power in China he has taken Lanka-Beijing ties to an
all-new level, by making Sri Lanka a vital part of his dream project called as One
Belt One Road (OBOR) project.
• In 2016, After getting a nod from Sri Lanka, China invested $24 billion in the
island nation despite knowing the fact that it is already in a debt of $8 billion.
• Sri Lanka signed a 99-year lease with the Chinese state-run shipping company.
Other than signing the lease, Colombo was asked to let out around 15,000 acres
in the nearby industrial zone to the China Merchants Port Holdings (CMPort).
• Recently China stepped up its investment in the Sri Lankan military. Chinese
military gifted Sri Lanka a frigate in addition to an agreement under which the
People’s Liberation Army (PLA) will train the Sri Lankan Army.
• A flurry of Chinese investments resulted in the construction of four-lane
highways, the new international airport, a cricket stadium and a conference
centre.
• The problem with these investments is they are not financially viable, built at
inflated costs and leave Sri Lanka heavily indebted to China.
 • Why Sri Lanka leased out the Hambantota Port?
Is China the • Structural issues in the country
only reason • China keeps on offering loans at reasonable
for Sri Lankan rates and continues to invest to further its
political motives
debt trap?