15 Jun 2023 - {{hitsCtrl.values.hits}}
Sri Lanka has long been seen as a strategically important country due to its geographical location in the Indian Ocean. Over the years, China has been aggressively increasing its presence and influence in Sri Lanka, particularly in the energy sector. While Chinese investments may seem lucrative and beneficial to Sri Lanka’s economic development at first glance, there are growing concerns that it comes at the cost of Sri Lanka’s sovereignty and security.
Sri Lanka’s energy sector
Sri Lanka’s energy sector has been experiencing rapid development in recent years. The country has been working on a number of initiatives to diversify its energy mix, reduce dependence on imported fossil fuels, and move toward more renewable energy sources.
Hydroelectricity is the main source of energy in Sri Lanka, accounting for about 70% of the total energy consumed. The government has been making significant investments in this sector, with plans to increase water storage capacity and improve efficiency. In addition, the government has also been promoting the development of solar and wind power.
Small-scale biomass production, primarily through the use of coconut husks, is also increasing. This helps to reduce dependence on imported coal and other fossil fuels while also providing rural communities with a reliable energy source. Large-scale biomass projects such as biogas, however, have yet to be developed in Sri Lanka.
The country is also moving towards the use of natural gas as a source of energy by increasing its imports of liquefied natural gas (LNG). In 2017, Colombo Port became the first port in South Asia to handle an LNG vessel.
China’s presence in Sri Lanka’s energy sector
China’s interest in Sri Lanka’s energy sector became evident with the construction of the Hambantota Port. This deep-sea port project, initiated by the Sri Lankan government, faced financial difficulties, leading it to be leased to China in 2017 for a period of 99 years. While this move was touted as an opportunity to revive the struggling port, it raised concerns among experts who argue that the lease significantly compromises Sri Lanka’s sovereignty and security.
With control over the Hambantota port, China gains a strategic foothold in the Indian Ocean, allowing it to monitor maritime activities and potentially challenge the traditional dominance of India in the region. This has raised alarm bells in both India and other regional powers who fear a Chinese naval presence so close to their shores. Sri Lanka’s strategic location could inadvertently become a pawn in the geopolitical rivalry between China and other powers, causing tensions in the region and undermining Sri Lanka’s security.
In addition to the port, China has also invested heavily in Sri Lanka’s energy infrastructure. This includes the construction of coal power plants in Norochcholai and investments in hydropower projects. While these projects have contributed to Sri Lanka’s energy capacity and reduced dependency on fossil fuels, the terms of these deals are often criticized for being opaque, leading to concerns about hidden debt and economic vulnerabilities.
China’s aggressive lending practices, commonly referred to as “debt trap diplomacy,” have raised concerns globally. Sri Lanka is no exception, with reports suggesting that the country is burdened with mounting debt owed to China. This debt poses a risk to Sri Lanka’s economy, as it could potentially lead to a loss of control over strategically important assets, including energy infrastructure.
Furthermore, Chinese investments in Sri Lanka have been marred by accusations of corruption and lack of transparency. The lack of consultation with local communities and disregard for environmental concerns during the construction of infrastructure projects have fueled public resentment. This has strained relations between the Sri Lankan government and its citizens, undermining the government’s legitimacy and contributing to social unrest.
Critics argue that China’s aggressive approach in Sri Lanka’s energy sector is not based on mutual benefit, but rather on advancing its own interests. China’s hunger for resources and its pursuit of global influence has led it to disregard the long-term consequences and local sensitivities in Sri Lanka.
In this context, Sri Lanka should strive to strike a balance between attracting foreign investments and safeguarding its sovereignty and security. This can be achieved through greater transparency in negotiations and agreements with China. The Sri Lankan government should also diversify its sources of investment by engaging with other countries and exploring alternative energy options.
Sri Lanka’s alliance with China should not come at the expense of its relationship with other regional powers. It is essential for Sri Lanka to maintain good relations with these countries, particularly India, to ensure a stable and secure environment in the Indian Ocean region.
In conclusion, China’s aggressive approach in Sri Lanka’s energy sector raises legitimate concerns about Sri Lanka’s sovereignty and security. The Hambantota port lease and investments in energy infrastructure have the potential to compromise Sri Lanka’s strategic position and economic stability. Sri Lanka must carefully navigate its relationship with China and ensure that its interests are safeguarded while hosting foreign investments.
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