Thursday, November 18, 2010

Chinese-built port in Sri Lanka fuels Indian fears Beijing is encircling themPort in Hambantota, Sri Lanka is latest in string of deepwater ports buil


A vast new Chinese-built and funded port was inauguratedtoday in the far south of Sri Lanka, fuelling the growing concern of neighbours India that they are being encircled by Beijing.

The deep-water facility at Hambantota on the south coast of the island was officially opened by President Mahinda Rajapaksa to kick off spectacular festivities celebrating the official start of his second term in office.

The Mahinda Rajapaksa port, built by Chinese labourers and engineers in a turn-key operation funded by soft Chinese loans, lies in the political heartland of Rajapaksa who, though controversial in the west for his alleged involvement in human rights abuses and autocratic style, remains popular among rural constituencies and the Sinhalese ethnic majority in the island nation. A traditional sailing yacht was the first vessel to dock in the port, followed by a cruise ship with dozens of saffron-robed Buddhist monks chanting prayers on its deck.

Sri Lanka is the focus of a contest for influence between Delhi and Beijing. India is particularly concerned about the so-called "string of pearls" – a chain of deepwater ports built with Chinese aid along the Indian ocean coast. "India should be closely monitoring developments like this which attest to a growing Chinese presence in the neighbourhood," said Uday Bhasker, a former India navy commodore.

However, Professor Srikanth Kondapalli, of Delhi's Jawaharlal Nehru University, said Beijing's priority was to safeguard its access to oil: "China imports 200m tonnes of oil each year and 80% of that travels across the Indian Ocean. They have therefore developed a series of major ports and in the future could potentially position naval military craft."

According to Sri Lankan government spokesmen, the aim of the port was "to capitalise on the opportunity that is offered by the island's new era of peace to bring prosperity to all."

Since the end of the 25 year civil war against separatists from the nation's Tamil minority last year, the economy has boomed. A massive influx of foreign capital – and tourists – is expected with income for many Sri Lankans predicted to double in the next five or ten years.

Rajapaksa, who turned 65 today, is hoping to turn Sri Lanka into a major transport and trade hub and a luxury tourist destination. The former lawyer has announced that Hambantota will bid for the 2018 Commonwealth Games.

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