Colombo (Capital of Sri Lanka) port city project is a project to build infrastructure of sub-city in Colombo. China is involved in development of port city project. The project is a joint venture between governments of China and Sri Lanka.

Concerns of India

India believes that involvement of Chinese construction companies in Sri Lanka creates a threat for Indian security. Chinese companies are involved in development of two important ports of Sri Lanka, Colombo and Hambantota. In guise of Chinese construction companies, Chinese navy may establish foothold in Sri Lanka.

Such a foothold may be detrimental to India’s interests in following ways:

  1. China may try to establish supremacy in Indian Ocean region.
  2. Indian trade especially oil supplies from Persian Gulf may be vulnerable because China would be able to disrupt these supplies to pressurize India.

Assurance by Sri Lankan Govt.

Sri Lankan PM Ranil Wickremasinghe recently has stated that Port city project is a commercial project. Chinese companies and Sri Lankan companies will hold 60 % capital. Remaining 40 % will be open to investment and thus, can also be acquired by Indian companies.

Further, he has stated that, unlike Gwadar port in Pakistan , operations of Colombo Port will not be managed by China.