Presidential hopefuls are cautious of criticising China the country that supplies half of Sri Lanka’s loans, ahead of Presidential elections.
Observers in Colombo don’t think that China’s influence over Sri Lanka has diminished or it has reduced or increased, but it has perhaps changed.
China still plays a key role in many public infrastructure projects financed through Chinese loans, and participation in the Hambantota port operations,” said Anushka Wijesinha, a Colombo-based economist and former government advisor.
He sees China’s footprint in Sri Lanka widening with investments “in private sector construction projects on commercial terms”.
Wijesinha also feels that presidential hopefuls now know better than to attack China for political gains.
“I don’t think either party wants to vilify the big regional players – China and India – in this election. They know it’s a bad idea.”
It is estimated that China accounted for over a half of Sri Lanka’s international borrowings between 2009 and 2015, worth close to $5 billion.
In the last decade it has ousted traditional lenders like Japan as the economy has reached middle-income status and concessionary loans have dried up.
Whoever comes to power next month will have to deal with these loan repayments just like President Sirisena had to four years ago, political analysts said.
China’s ambassador to Sri Lanka, Cheng Xueyuan, defended investment in the country at an event in Colombo last week for journalists and academics. He said that low interest rates from China were helping Sri Lanka pay off higher rate loans from Western countries.
China has also shifted its public diplomacy onto a subtler footing. Since the 2015 elections, the Chinese mission in Colombo has been currying favour among the Sri Lankan media.
Several dozen journalists have been on sponsored tours of mainland China while others have been offered scholarships for higher studies and training.
“They really don’t tell you anything on politics, but the indications are that they expect you to be on their side,” one participant said.
Small wonder there isn’t a murmur on China in the media or on the campaign trail.
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