{"id":10917,"date":"2021-02-05T15:30:20","date_gmt":"2021-02-05T08:30:20","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=10917"},"modified":"2021-06-04T15:59:18","modified_gmt":"2021-06-04T08:59:18","slug":"chinas-influence-in-sri-lanka-following-rajapaksas-return","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/chinas-influence-in-sri-lanka-following-rajapaksas-return\/","title":{"rendered":"China\u2019s influence in Sri Lanka following Rajapaksas\u2019 return"},"content":{"rendered":"

Beijing-invested projects\u00a0<\/span>have picked up with the family\u2019s political\u00a0<\/span>comeback<\/span>\u00a0<\/span><\/p>\n

\"\"
Port City will have offices, apartment blocks, and a marina, on a 99-year lease for China to manage the new city<\/span>. Rakhitha_w\/Shutterstock<\/figcaption><\/figure>\n

According to\u00a0<\/span>The Wall Street Journal<\/span><\/a>,\u00a0<\/span>China is confident to begin developing a USD13 billion city on Sri Lanka\u2019s ports<\/span>\u00a0with its deepened ties with Beijing<\/span>, as the nation<\/span>\u00a0is<\/span>\u00a0situated near some of the world\u2019s\u00a0<\/span>prime shipping passages<\/span>.\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Port City, planned to be developed on 660 acres of land retrieved from the sea near Colombo\u2019s city <\/span>centre<\/span>,\u00a0<\/span>has been delayed under a previous government.\u00a0<\/span>As the family of Mahinda Rajapaksa has returned to power,\u00a0<\/span>ties with China have strengthened<\/span>\u00a0once more.\u00a0<\/span>\u00a0<\/span><\/p>\n

The completion of Port City would become an important representation of the power of Beijing\u2019s Belt and Road Initiative, which aims to\u00a0<\/span>broaden Chinese influence through its financial and construction strength across Asia and\u00a0<\/span>beyond.\u00a0<\/span>\u00a0<\/span><\/p>\n

Sri Lanka is striving to rebuild following a detrimental civil war<\/span>\u00a0and economic contraction from events like the COVID-19 pandemic.\u00a0<\/span>\u00a0<\/span><\/p>\n

Palitha\u00a0<\/span>Kohona<\/span>, Sri Lanka\u2019s ambassador-designate to China, said, \u201cthe one entity that came to our\u00a0<\/span>assistance<\/span>\u00a0hastily was China.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

According to the Central Bank of Sri Lanka, 43 percent of loans for major projects came from China in 2019, and aro<\/span>und 10 percent of the country\u2019s overall foreign debt is owed to China.\u00a0<\/span>\u00a0<\/span><\/p>\n

For this round of projects, including Port City, the\u00a0<\/span>Rajapaksas<\/span>\u00a0are seeking equity investments.\u00a0<\/span>\u00a0<\/span><\/p>\n

The US has urged for touch economic\u00a0<\/span>rebuilds in Sri Lanka, in hopes to attract further American private-sector investment.<\/span>\u00a0<\/span><\/p>\n

Ajith Nivard Cabraal, state minister of money, capital markets, and state enterprise reforms, said, \u201cwe would welcome investment from the United States<\/span>, b<\/span>ut that doesn\u2019t mean we exclude anyone else who is keen to invest.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Cabraal added that Sri Lanka is negotiating a USD700 million loan\u00a0<\/span>from<\/span>\u00a0China, including a USD1.5 billion currency swap facility. In early 2020, China loaned USD500 million<\/span>\u00a0and provided<\/span>\u00a0a USD90 million grant.\u00a0<\/span>\u00a0<\/span><\/p>\n

More: Chinese investments spike in the Philippines despite pandemic<\/strong><\/a><\/p>\n

The government plans to introduce new regulations\u00a0<\/span>in parliament\u00a0<\/span>to make special laws for Port City, which w<\/span>ill\u00a0<\/span>allow smooth transactions and tax breaks to stimulate investment and commerce from the\u00a0<\/span>project.<\/span>\u00a0<\/span><\/p>\n

Port City will have offices, apartment blocks, and a marina, on a 99-year lease for China to manage the new city. The area is foreseen as a financial service<\/span>\u00a0and technology hub, unlike <\/span>China’s\u00a0<\/span>industrial zones in<\/span>\u00a0other countries<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Beijing-invested projects\u00a0have picked up with the family\u2019s political\u00a0comeback\u00a0<\/p>\n","protected":false},"author":12,"featured_media":20988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[137,466,1081,120],"class_list":["post-10917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-china","tag-loans","tag-new-ruling","tag-sri-lanka","news_country-china","news_country-sri-lanka","news_author-property-report"],"acf":[],"yoast_head":"\nChina\u2019s influence in Sri Lanka following Rajapaksas\u2019 return | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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