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21 Feb 2017

This bulletin looks at the impact of China’s investments in Sri Lanka, which include assorted loans and the sale of the port in Hambantota to a Chinese firm. The bulletin’s author ultimately concludes that the investments aren’t boosting the local economy because the money isn’t staying in the country, which is a familiar way of doing business on Beijing’s part. In fact, it’s possible that Sri Lanka will have to be bailed out because of its crushing Chinese-owned debt. The author further argues that India must recalibrate its security strategy towards other South Asian countries if it hopes to respond effectively to China’s activities in the Indian Ocean.

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Author Shiyana Gunasekara
Series East-West Center Asia Pacific Bulletin
Issue 372
Publisher East-West Center (EWC)
Copyright © 2017 East-West Center
 
 
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