Balance India, China relations effectively, urge analysts
Encircled by two global powers with India not wanting to lose its influence in the Indian Ocean and China asserting its presence regionally, political and shipping industry analysts believe Sri Lanka stands to gain without any "dramatic repercussion" if authorities tactfully balance these ties for its benefit.
The growing presence of China's entry into Sri Lanka has become a concern for India that Colombo University Political Science Department and Public Policy Prof. Jayadeva Uyangoda believes is al- efits to India and Indians alone. "CEPA was never taken up for discussions with the CEO delegation from India and the whole idea of the recently concluded forum was to double the trade while reducing the imbalance in trade gap between two countries", he said. Did Sri Lankan officials even
think as to how to so due to the latter's failure in its continued influence on Bangladesh and Nepal nearly 10 years back. In this respect, he notes India does not want to lose Sri Lanka. "Sri Lanka has to be more careful in balancing between India, China and Pakistan," he observed. However, when queried whether the island nation would be impacted due to the continued irritation on the part of India, it was pointed out that Sri Lanka was unlikely to face any "dramatic repercussion" due to the presence of these two powers. But interestingly though while India's presence is marked tackle Indian arrivals or at least monitor them when Indians were given the visa to Sri Lanka on entry, he asked. He said that sooner than later there would be more Indians than Sri Lankans in Sri Lanka? Did India even reciprocate this gesture? He noted that if CEPA is approved, Sri Lanka would be flooded only in the region, China interests on the other hand lie in international waters and has long term plans to improve its access to raw materials and oil through established links connecting the East to South Asia, Africa and West Asia, Cargoserv Shipping Managing Director Jayantha Ratnayaka told Business Times. And in its string of pearls Sri Lanka is aptly secured with its involvement in the Hambantota port construction while others in this line are Myanmar, Bangladesh, Pakistan, Maldives and Kenya, he said. with Indian labour in all spheres of work - professional, skilled, semiskilled and unskilled because of India's heavy unemployment. How can Sri Lankans be assured of employment in India when 327 million non-graduate Indians are unemployed and 4.8 million graduates are unemployed? M. P. Wickremasinghe, Chairman, Ceylon Biscuits Ltd told the Business Times that President Mahinda Rajapaksa has assured that CEPA will not be signed as it is not beneficial for the country.
Director Multichemi Group Samantha Kumarasinghe, who is a spokesman of the antiCEPA group, said that the CEPA is bound to cause serious harm to Sri Lanka. According to him the Indian authorities have consulted around 1000 Indian economists on CEPA. But in Sri Lanka's case it was the opposite, he alleged. He noted that not a single businessman professional or entrepreneur in Sri Lanka has been consulted.
In a more recent development China has secured a project for the construction of the Thai canal called the Isthmus of Kra and is also looking further to Greenland as well, he said. Analysts observe that Sri Lanka must use its resources to its benefit by maintaining its independence and strategic importance in the region. In spite of India's continued concern of China, Sri Lanka on its part is expected to perform better keeping in mind the development of the southern ports in the neighbouring state. About 70-80% of the Colombo port's throughput is transshipment based and out of this close to 90% is Indian cargo, Mr. Ratnayaka said pointing out the need to be concerned. The Colombo port has become a strategic location for both India and China (control of a terminal). Authorities in Colombo also have interests in developing its port infrastructure to gain a hub status in the region. However, Mr. Ratnayaka believes that such a hub status can be achieved by marketing the entire country and not simply Colombo.
He also observed that including increased private sector participation was crucial in attracting more business to the ports and shipping sector. In fact, once the Hambantota port becomes a container port it would be more useful, he said adding that it would take time to develop but would prove beneficial to Colombo in the long run.