US Funds India's Sri Lankan Port Project to Counter China’s Rising Influence| OneIndia News

last year

Sri Lanka fell into a debt trap with China's $1.26 billion loan for the Hambantota Port in 2007, leading to China's control of the port in 2017. In response, the U.S. plans a $553 million investment in Sri Lanka's Colombo port, countering China's influence. The U.S., along with India's major port operator, aims to enhance Sri Lanka's infrastructure and economy.

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Transcript

00:00 Sri Lanka is the perfect example of how China's financial assistance is nothing more than

00:08 a trap.

00:09 China gave Sri Lanka a 1.26 billion loan in 2007 so that the island nation could construct

00:16 the massive deepwater port known as the Hambantota on its southern coast.

00:20 Although the port was intended to be a significant hub for maritime trade, Sri Lanka largely

00:25 failed to carry out operations in the port.

00:27 As the time went on, it was inevitable that Sri Lanka would be unable to repay the loan.

00:32 As a result, Sri Lanka was compelled to give China control of the port in 2017.

00:36 Many criticized the Hambantota port agreement as an example of a debt trap policy.

00:41 China also stationed its military personnel at the port, sparking concerns that Beijing

00:44 might attempt to establish its dominance in the Indo-Pacific area.

00:49 And after that, we all know what happened in 2022 when the economic crisis erupted.

00:54 Now to lessen the influence of China in Sri Lanka and importantly, in Indo-Pacific's

00:59 crucial maritime routes, the US has devised a plan to invest in Sri Lanka's Colombo

01:03 port.

01:04 In a strategic move to counter Sri Lanka's troubling Indo-Pacific dominance, the US

01:08 has unveiled a $553 million project to build a deepwater shipping container terminal in

01:14 Sri Lanka's Colombo port.

01:16 This initiative, funded by the US International Development Finance Corporation, aims to enhance

01:21 Sri Lanka's infrastructure and elevate Colombo into a premier global logistics hub.

01:26 The West Container Terminal expansion will accommodate the region's growing economies

01:30 in the Bay of Bengal.

01:32 Reportedly, DFC Chief Executive Officer Scott Nathan emphasized that this investment will

01:37 foster prosperity in Sri Lanka without increasing sovereign debt, simultaneously strengthening

01:43 alliances across the region.

01:45 Sri Lanka facing a severe financial crisis welcomes this boost to its economy.

01:49 Although the most interesting aspect of the story is that the consortium developing the

01:53 terminal includes India's major port operator Adani Ports and Special Economic Zone Limited,

01:59 which holds 51% of the port's ownership.

02:02 Therefore, this action can also be viewed as a joint US-India effort to counter China.

02:07 Similar infrastructure projects like the I2U2 in West Asia are being worked on by the US

02:12 and India.

02:13 The US provides funding, and India provides logistics and operational units.

02:18 In addition, the US is also offering development assistance to Sri Lanka in order to assist

02:22 in its slowing debt load and enhancing the economic governance.

02:26 In 2022, the US announced a 266 million package for Sri Lanka.

02:30 Although the US's approach to diplomacy regarding China's debt trap is still developing, it

02:34 is evident that the US is dedicated to assisting Sri Lanka and other developing nations in

02:39 avoiding China's debt trap, as well as to thwarting China's expanding military and economic

02:44 power in the Indo-Pacific area with other nations such as India.

02:49 [music]

02:56 (dramatic music)

02:59 [BLANK_AUDIO]

US Funds India's Sri Lankan Port Project to Counter China’s Rising Influence| OneIndia News

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