By Aroosa Hafeez

China’s relationship with South Asian countries are gradually mounting and China is also doing greater efforts to deepen its relations with many countries to ‘go global’. South Asia is a region struggling with conflicts, disputes, human developments challenges and many others. Meanwhile, China is expanding its footprints in the region, especially with those countries which are under the influence of India. China is determined to enhance its economic along with strategic cooperation with South Asian countries. China has its infrastructure projects in dozens of countries which include Sri Lanka. Ties between both countries have long focused on commerce, ever since the time of prehistoric seafaring traders but these ties flourished between both countries after 2005.

History of Sri Lanka is intertwined with relationship with broader Indian subcontinent. Previously, Muslim India enjoyed cordial relationship with Sri Lanka. Muslims (Arab) traders established very friendly ties with the Buddhist since their settling in the island and both the communities shared stronger political and trade relation. It was a longstanding relationship of ethnic harmony among different religious societies but during the colonial rule Muslims were ill-treated, marginalized and persecuted.The Muslims of Sri Lanka gave crucial support in gaining independence from the British rule in 1948. The colonial power (British invasion of India) destroyed historic Muslims and Buddhists relationship. In this way India inherited all the treaties with Sri Lanka during British period and after partition. However, today India’s weary policy for neighbors has again turned the relationship bitter. Muslim India which has been the leading partner of Sri Lanka for decades, whether from investment point of view, defense or trade, has gone to considerable change over the period of time with warming ties between China and Sri Lanka.

China’s role is expanding geographically, not only in Sri Lanka but in South Asia as a whole. Its growing influence in Sri Lanka is no more a secret but seems to be a matter of geopolitical concern for India alone. India is shaping its policy according to the perspective of U.S., who view rise of China as a threat to its dominance and national interest. Where China and U.S are competitors, U.S. is using India as its strategic opportunity in Indo-Pacific region. Sri Lanka’s strategic importance to China, India and U.S. is being viewed as a larger geopolitical dynamic. U.S. and India blame China of “dept-trap diplomacy” in countries like Sri Lanka but relationship among both the countries has increased after China’s support for Sri Lanka after long Civil war.

China’s role in Sri Lanka has increased remarkably in recent years. Its investment, funding and arm supply to Sri Lanka has proven to be the backbone of increased cordial ties between both the countries. China has become a top investor in Sri Lanka with funding and investment of nearly $15 billion. From 2005-15 China with $14 billion has been the leading source of Foreign Direct Investment (FDI) and Official Development Assistance (ODA) for Sri Lanka. Apart from this, there is $2 billion private Chinese investment. At the end of 2015, China’s private investment reached $338 million, comprising 35% of Sri Lanka’s total FDI whereas India’s share of FDI was only 7%. Chinese dominance in assistance is also evident. Its FDI and ODA have overshadowed other nations in the Island. However, India and other players in the Island cannot compete with the size of Chinese investment. Many projects contributed positively in Sri Lanka’s economy and brought benefits like the project of Colombo International Container Terminal (CICT).

Friendly ties between China and Sri Lanka have its origins earlier from the Maritime Silk road, which is viewed as a geopolitical competition with actors involved in wider Indo-Pacific, mainly India. Sri Lanka is located in the region which gives proximity to important sea lanes. China’s rapid growth is dependent on sea trade through strategic choke points from where large proportion of trade and energy flows. The Hambantota port and Colombo International Container Terminal (CICT) serves as strategic assets for China. China’s investment in construction of these ports has various economic and strategic concerns. As Sri Lanka is equidistant from eastern coast of Indonesia and Africa and is at the Southern tip of neighboring India. Hence it is at the middle of Indian Ocean. Approximately 80% of China’s oil passes through Indian Ocean. More than 85% of the trade by China takes place through Indian Ocean shipping routes including the Malacca Strait which possesses a great threat for China from other states, who can block its trade routes. However, China has taken many other measures to find alternative routes to build its influence in Indian Ocean. On the other hand, India keeping a wary eye on China because of its growing military and economic reach into the Indian Ocean, intensifying rivalry between both countries. Currently, China builds stronger relations through Belt and Road Initiative (BRI).

Sri Lanka’s prime location and ports situated in the region has more intensified geopolitical rivalries in Indian Ocean.  China is expanding its influence in the Indo-Pacific region to challenge India and U.S., and using its geo-economic leverage in Sri Lanka. U.S. and India concerns that China will use these ports for military purpose which cause worry for them. Sri Lanka on the other hand has strengthened is naval presence at Hambantota port and both countries reached a long-term lease agreement to set up an industrial park at Hambantota.

Competition between India and China has grown to a greater extent; both want to build regional supremacy. Maintaining grip in South Asia has been a key goal of India’s policy but its strategic thinking about other states has continental view whereas China’s foreign policy reflects its own economic and military interests. Sri Lanka seems to be falling into Chinese influence which India considers as a threat to their dominance over the region. India’s goal of becoming a greater power seems to be longstanding as its ties with South Asian countries continue to be strained. However, China’s cooperation with Sri Lanka’s military can be a nightmare for India causing setback for Indian security and unnerved India of the fear of rise of China.