After India extended a bailout package worth $900 million to Sri Lanka, the island country is now requesting New Delhi to pour investments into the port, infrastructure, energy, power, and manufacturing sectors. Shortly after Chinese Foreign Minister Wang Yi’s visit to Sri Lanka, the request from the top government officials in Colombo to India may come as a rude shocker to Xi Jinping and his politburo.
Reportedly, Sri Lankan Finance Minister Basil Rajapaksa held talks with External Affairs Minister S Jaishankar on Saturday (January 15) and discussed projects and investment plans by India that would strengthen the economy of the island nation.
Thanking New Delhi for the bailout package, Rajapaksa also added that Colombo will create a ‘conducive environment’ so that it benefits both sides.
Just concluded a detailed virtual meeting with Sri Lankan Finance Minister @RealBRajapaksa.
Reaffirmed that India will be a steadfast and reliable partner of Sri Lanka. pic.twitter.com/aYgKEpkSFy
— Dr. S. Jaishankar (@DrSJaishankar) January 15, 2022
India and Sri Lanka to jointly develop the Trincomalee Oil Tank farm
Sri Lanka’s serenading gesture towards India comes on the heel of the recent decision of jointly developing the oil tank farm in the island’s north-eastern Trincomalee province.
As reported by TFI, giving major heartburn to China, New Delhi and Colombo, earlier this month (January 5) announced their decision to jointly develop the tank farm. According to the agreement reached, the Indian Oil Subsidiary, Lanka IOC (LIOC) would be given a 49% stake in the joint development of the Trincomalee Oil Tank farm, with Ceylon Petroleum Corporation keeping 51%.
Located in China Bay, the tank was built during the Second World War by the British to serve as a refuelling station. The Oil farm has 99 storage tanks with a capacity of 12,000 kilolitres. Currently, LIOC runs 15 tanks but the deal will see 61 tanks being jointly developed.
Stuck since 1987, the deal completed only after PM Modi’s intervention
In 1987, India and Sri Lanka agreed to jointly restore and operate the Trincomalee oil tank farm through an exchange of letters annexed with the India-Sri Lanka agreement signed between the two countries. However, owing to the civil war and several other bottlenecks, the deal could never reach its fruition.
After PM Modi visited Sri Lanka in 2015, the two sides agreed to set up a petroleum hub in Trincomalee, for which a “joint task force” would draw up plans. However, with China lovers sitting in the Sri Lankan cabinet, the deal went into a lull once again.
But with Sri Lanka spiralling into an economic crisis, India managed to find a way in. Reportedly, Foreign Secretary Harsh Vardhan Shringla in October, during his visit to the island nation made it a point to tour the tank farms, foreshadowing the just-concluded deal.
Read More: In a huge blow to China, India snags massive oil tank farm deal with Sri Lanka
Sri Lankan ministers openly criticizing China and Xi Jinping
The entire government machinery of Sri Lanka is quietly pivoting towards India in recent times. It was evident when Sri Lankan lawyer and Member of Parliament Wijeyadasa Rajapakshe wrote a scathing 6-page letter to Xi Jinping accusing him of damage to the Sri Lankan economy.
In the 45-point letter, Rajapakshe did not hold back and called out China’s One Belt-One Road initiative. He remarked in the letter, “The longstanding relations of ours has turned into a different course since your country launched the “One Belt-One Road” policy on the pretext of strengthening the foreign policy and economic strategy of China.”
Stating that China only used the island nation, Rajapakshe slammed Jinping by remarking, “It is manifestly visible that your friendship with us is no more genuine and candid, instead you use our relations to achieve your ambition of becoming the world power at the stake of lives of our innocent people. Further, you are dismantling the peace in our region as well as in the world by making our nation the first victim of your power struggle with other nations of powers that be.”
Read More: ‘You made us bankrupt,’ Sri Lanka sends a warning to Xi Jinping as India bags a massive deal
India bailing Sri Lanka out
There is no beating around the bush that the economic crisis has deepened in Sri Lanka and solely due to China. The country owes more than $6 billion to Beijing.
However, to help its neighbour wade the stormy waters, New Delhi, in addition to the $900 million line of credit, is also looking to inject $1.5 billion into the Sri Lankan economy. New Delhi is also facilitating Indian investments in different sectors in Sri Lanka to contribute to the growth and expand employment.
Meanwhile, China is seething through its teeth, observing the recent developments as Sri Lanka doubles down its engagement with India.
Great job India! Time to show india’s mettle! Thank you Modi jee and his team!