Lanka 'getting closer' to China

--BBC--

By Chalres Haviland BBC News, Colombo

	Sri Lanka says China 'remained a friend at times of difficulty'

After being roundly criticised by some of its traditional Western friends over its conduct of the recently ended war, Sri Lanka is getting even closer to its allies within Asia such as India and China.

Some economic analysts feel that Beijing may just have the edge over Delhi where business ties with the island nation are concerned.

Sri Lanka's foreign minister concludes a four-day visit to China this weekend and has told his hosts that “China has remained a friend of Sri Lanka at times of difficulty”.

Economic impact

Chinese military aid helped Colombo defeat the Tamil Tiger rebels; and China, with India, Pakistan and others, helped this country stave off a Western-sponsored motion of criticism at the UN human rights council.

I think China is pretty fast off the mark and they are very quick to do deals because it is state financing that is coming and they are giving it straight to the SL government-owned because on pretty good terms Asantha Sirimanne, LBO

Beijing is also making a big economic mark.

Chinese companies are developing a vast new port in the president’s home town of Hambantota.

And on the west coast Beijing is financing a major coal-fired electricity plant.

Asantha Sirimanne of Lanka Business Online points out that this project is ahead of a smaller Indian one in the north-east that is not yet under way, and thinks Indian ministers are getting a little uneasy.

	Analysts say China may have the edge over India

“I think China is pretty fast off the mark and they are very quick to do deals because it is state financing that is coming and they are giving it straight to the SL government-owned because on pretty good terms. So I think it is Chinese probably fast and more eager than India,” he said.

This week there has been further satisfaction for Beijing.

Sri Lanka’s Board of Investment signed a deal with a Chinese conglomerate, Huichen, to let it build infrastructure in a pre-existing special economic zone and market it exclusively to Chinese companies.

The government said it was the first time a foreign country was being given a specific tract of investment land to develop.

Politically, militarily and economically this country is looking for new allies.