On Tuesday, May 7, the Sri Lankan government announced that it had approved a 20-year power purchase agreement with India’s Adani Green Energy. The company is investing almost half a billion dollars in the island, where several projects will be implemented in the future. Also of note was the fact that an Indian-Russian joint venture won control of the Chinese-funded Mattala Rajapaksa International Airport (MRIA). These steps can be said to be significant in terms of the country’s geopolitical direction, since China was clearly the most important partner in Colombo before. Bitter experiences, on the other hand, prompted the political leadership to try to diversify their relationships.
The growth of India’s influence also corresponds to New Delhi’s plans, as in recent years it has systematically tried to counterbalance Beijing’s growing influence in the Indian Ocean region.
The renewal of the MRIA was a symbol of reckless investment in the country: the airport, renovated with 209 million dollars, has been completely empty for years, causing huge losses to the state treasury. There were other consequences of the under-coordinated investments, the ownership of the strategically important port of Hambantota was given to Beijing for 99 years in exchange for the debts, which is a sore point for Colombo, as they hoped for huge revenues from the trade here.
The representatives of the Sri Lankan government said that they did not want to get involved in the geopolitical games of the great powers, and they accepted the offer that promised the greatest return on the airport issue. However, they added that they hope that New Delhi will look at its southern neighbor as a potential investment destination.
The island country is located at a strategic point in the Indian Ocean, therefore it plays a prominent role in controlling many international trade routes.
In the region, India and China are increasingly actively engaged in geopolitical battles in order to ensure their own influence. The growing importance of the region could come in handy for Sri Lanka, as a bidding war could begin for Colombo’s favors from the two superpowers, putting the government in a comfortable position.
