Colombo

Strategic Trap

Through continued dialogue and astute diplomacy, Sri Lanka can emerge as a trusted partner for both China and India.

By Basit Ali | August 2024


Sri Lanka, a tiny island country commonly referred to as ‘the pearl of the Indian Ocean,’ seems to bear the brunt of its dynastic leadership with a parochial approach, which has not been able to lead the nation at par with emerging geostrategic dynamics. Over the last few years, Sri Lanka’s diplomatic dealings with global powers, notably China, have drawn intense scrutiny and debate. Allegations of China using coercive tactics to advance its strategic and economic interests in the South Asian region have amplified concerns worldwide. To unravel this multifaceted issue, it is imperative to delve into the historical backdrop of Chia-Sri Lankan relations, the economic dynamics, and the broader geopolitical implications.

Since establishing diplomatic ties in 1957, Sri Lanka and China have fostered a relationship marked by cooperation and friendship. China’s involvement in Sri Lanka’s developmental ventures, particularly post-civil war reconstruction from 2009 onwards, has been pivotal. China’s launch of the Belt and Road Initiative (BRI) in 2013 further elevated Sri Lanka’s strategic significance in China’s Maritime Silk Road aspirations, focusing predominantly on bolstering infrastructure such as ports, highways, and energy facilities.

Central to the discourse is the contentious Hambantota Port development project. In 2017, Sri Lanka leased control of this critical maritime facility to a Chinese firm for 99 years in exchange for debt relief, triggering widespread apprehension. Critics argue this move exemplifies a broader pattern of debt-trap diplomacy, potentially compromising Sri Lanka’s sovereignty and regional stability. The strategic implications of such initiatives, including the perceived “String of Pearls” strategy to secure maritime routes, have fueled anxieties about heightened Chinese influence at the expense of regional equilibrium.

“To the rest of the world, Sri Lanka has become a cautionary tale of misgovernment and misfortune. The profligacy of the Rajapaksa brothers and a misguided plan to convert the nation’s farming industry into a solely organic enterprise collided with factors out of the country’s control. Those included the sweeping impact of the pandemic, which crashed the vital tourism sector, and then the Russian invasion of Ukraine, which disrupted global supply chains and accelerated the inflationary spiral that dragged Sri Lanka’s economy into the abyss,” according to Ishaan Tharoor, Indian foreign affairs columnist and writer.

Maintaining equilibrium in its foreign relations with China and India remains paramount for Sri Lanka. Key strategies include diversifying international engagements beyond regional giants to mitigate dependence risks. Strengthening ties with traditional allies like the United States, Japan, and European Union countries offers diplomatic leverage and ensures a balanced approach to economic partnerships.

Active participation in regional forums such as the South Asian Association for Regional Cooperation (SAARC) and the Indian Ocean Rim Association (IORA) fosters dialogue, enhances cooperation, and collaboratively addresses shared challenges. Sri Lanka’s strategic location in the Indian Ocean also positions it as a potential mediator in regional disputes, promoting peace and stability through dialogue and diplomacy.

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