Recently, the Sri Lankan government issued a statement on the same day that it plans to transfer the management of the Chinese-built Matala Rajapaksa International Airport to Indian and Russian companies for a period of 30 years.
The construction of the airport was undertaken by a Chinese company with an investment of $209 million, and was financed through a loan from the Chinese side. However, due to route settings and local planning strategies, the airport, which was originally designed to serve 1 million visitors a year, did not experience the busiest it had hoped.
And now Sri Lanka has chosen to hand over the management rights, just to exchange some money from India and Russia to ease the current debt pressure, to put it bluntly, it is to tear down the east wall and make up for the west wall. And for India and Russia, and especially for India, it will be a big gift to the door.
This is because India coveted the right to operate the airport years ago, as it is only half an hour's drive from the Chinese-run Hambantota Tower. Moreover, as Chinese investment in Sri Lanka and the wider South Asian region increases, India fears that its traditional influence in the region will wane, making it feel that its strategic position is being challenged.
【Matara Rajapaksa International Airport】
Therefore, since the port was built, the West and India have begun to hype it as "China's military fulcrum into the Indian Ocean", believing that sooner or later China will convert this port into a military use, even if Sri Lanka and China have repeatedly refuted rumors that it is only a civilian port. Now that India has finally seized the right to operate the airport, many experts say it may be to monitor the ports managed by China.
And for us, this port is very important to us, not only an important channel for our commodity exports and raw material imports, but also a strategic location. Now that India is on our side, we must also be on guard.
In addition, there are two negative aspects that cannot be ignored.
First, China's overseas infrastructure investments, including ports and airports, are often not just economic investments, but also have strategic purposes. Sri Lanka is strategically located in the Indian Ocean, and by helping Sri Lanka build critical infrastructure, China can strengthen its relationship with Sri Lanka and thus strengthen its influence in the Indian Ocean region.
But now that India has taken over the airport, China's strategic presence in South Asia will be frustrated, affecting its influence in the region and even in the Indian Ocean.
[Sri Lankan Prime Minister Kagu Nawayna arrives in China for a visit]
In addition, investing in the construction of the airport requires huge sums of money, and if the airport is taken over by India, then Chinese companies may suffer economic losses, including the loss of investment and expected profits, as the economic benefits that may arise from the airport in the future will also go to India. In international investment and construction projects, being taken over or losing control is often seen as a sign of poor project management. This could damage the international image and credibility of China and its companies, and affect China's future bidding and construction around the world.
It is worth mentioning that at the beginning of this month, the Prime Minister of Sri Lanka came to China for a six-day visit to China, and he was also picked up by a special plane from China, giving him the highest level of treatment. During the visit, China signed a number of cooperation documents with Sri Lanka in the fields of industrial investment, standardization, livelihood assistance, agriculture and media, which comprehensively contributed to Sri Lanka's economic development.
But now, Sri Lanka is using China's investment projects as a tool to repay debts, and transferring them to other countries at will, which will inevitably make China feel stabbed in the back. In fact, since the distance between this airport and the port is so close, after a period of development, it can fully develop the local area into an excellent sea-air linkage logistics node. But now that India has taken over the operation of the airport, I am afraid that this airport will never turn around.
【Hambantota Port】
Although in the short term, Sri Lanka can indeed obtain a large amount of income through the sale of management rights to alleviate the current economic pressure, but in the long run, it is actually not a good deal.
You must know that since Sri Lanka ended its civil war in 2009, many countries have not responded to Sri Lanka's request for loan assistance, and in the end, only China has sent support, and no political conditions are attached to help Sri Lanka rebuild its homeland. India's help to Sri Lanka is largely motivated by the desire to compete for influence with China, rather than its sincerity in seeking development for Sri Lanka.
Including some time ago, India turned over the old accounts and wanted to regain the sovereignty of Kachatevu Island from Sri Lanka and further reduce the fishing range of the Sri Lankan people.
In addition, Sri Lanka's decision to transfer management rights came just days after Sri Lanka formally proposed to join the BRICS, but Sri Lanka's back-and-forth between China and India may be seen as a lack of basic cooperative ethics, and any behavior that may cause distrust among member states could hinder the accession process.
By working closely with the BRICS, Sri Lanka can enjoy the benefits of increased investment, expanded market access, and trade facilitation to improve its infrastructure and introduce key technologies. At the same time, joining the BRICS will give Sri Lanka a greater say in international affairs and further break away from dependence on India. In short, for Sri Lanka, the cost of transferring business rights to India is far from being measurable in money.