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Mar. 12 – The governments of India and China plan to loan more than US$400 million to develop infrastructure on the South Asian island of Sri Lanka in separate deals inked over the past week.
Sri Lanka’s government signed a US$290 million deal with China to construct the Mattala Airport and upgrade the Sri Lankan Railway in the country’s Southern Province. Upon completion, the airport will become one of only two operational international airports in the country. The Chinese lending arm, Export-Import Bank, is also helping to construct a modern sea port in Hambantota.
China has been the island nation’s largest source of foreign funding in recent years, contributing US$1.2 billion in 2009. Sri Lankan officials said last week that funding from China accounts for more than half of the country’s construction and development loans.
Not to be outdone, India and Sri Lanka agreed on Wednesday to a US$67.4 million deal to develop the Southern Railway Line from Colombo to Matara, adding to a US$100 million deal endorsed by the Export-Import Bank of India in 2008.
There has been some speculation that recent Chinese investment in Sri Lanka is an attempt to undermine India’s influence in the region. Some in Sri Lanka, however, have a different take on the matter.
March 13th, 2010 at 4:51 am
Sri Lanka now is the Gateway to India from the East and Sri Lanka is the Gateway to the Asia-Pacific in general and China in paticular to the entire West
when stage one of the Hambantota Harbour complex is completed by end of 2010. China-Sri Lanka-India forms the New Silk Maritime Route in the Indian Ocean.
Sri Lanka which is endowed with a JANUS like Geography and the only place in the World where the East and West come closest to meeting at least in passing-bye of Ships plying in both directions.
March 13th, 2010 at 8:34 am
It is gratifying to see the Asian Super powers China and India providing genuine support financially,politically and morally to Sri Lanka, as it attempts to recover from 3 decades of Terrorism that among others derailed and destroyed many attempts of Sri Lanka at economic development.
Physical destruction of development constructions and internationally orchestrated misinformation to derail and destroy international investment and economic assistance especially from the west were the ploys the terrorists resorted to acheive this
While the former threat has now been largely eliminated the latter is once again re-emerging under the guise of the World Tamil Forum WTF.
It is gratifying that this propaganda is not washing in China and India , who as neighbors and as countries sharing a similar heritage and culture , are more aware of the ground realities.
Sri Lanka in the 1950’s formed the model on which Singapore was built. Sri Lanka has maintained literacy rates well over 90 % since then as well asmaintained health indices like infant mortality rates comparable to the west. Life expectancy too is in the 70s and 80s for males and females.The per capita income is over $2000 and highest among the major economies of south asia. IT literacy is over 25% increasing rapidly.
Aid and investment in Sri Lanka there fore can only be win- win for all parties
It is gratifying to see wisdom that created and sustained civilizations for thousands of years , asserting itself once again, while the west continues to “cry foul” at Sri Lanka, influenced by the likes of WTF, Sri Lanka whom they subjected to colonial rule deprivation of human and all rights then, this time as it aims to raise it’s head from terrorist deprivation.
March 17th, 2010 at 6:13 pm
This is good news, I have some investments there and this will help!