Sri Lanka, Japan and India have signed an memorandum of co-operation to develop the Colombo port, in a move designed to counter China’s growing footprint in the region.
Sri Lanka was forced to handover the strategic port of Hambantota to China on a 99-year lease in 2017 after struggling to service more than $1bn in debt. The transfer saw China gain a strategic position along a key commercial and military waterway close to rival India.
“As a hub of the Indian Ocean, the development of Sri Lanka and openness of its ports are of great importance,” said a statement released by Japan embassy in Sri Lanka. “This joint project reflects the longstanding good will and co-operation among the three countries.”
Paikiasothy Saravanamuttu, from the Centre for Policy Alternatives in Colombo, said that Sri Lanka is seeking to “rebalance” relations between China and other countries.
“Sri Lanka doesn’t want to be too dependent on China in terms of finances and alliances,” said Mr Saravanamuttu. “India, Japan and United States are aligned on one side and China is on the other.”
