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Sri Lanka: China's Belt and Road Partner in the Indian Ocean
Author(s): Kaidong Lin (London School of Economics and Political Science, China)
Copyright: 2026
Pages: 34
EISBN13: 9798260006047
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Abstract
This chapter examines China–Sri Lanka relations under the Belt and Road Initiative as a deeply integrated yet increasingly contested partnership. It traces their evolution from the 1952 Rubber–Rice Pact and post-war political alignment to China's role as Sri Lanka's largest investor and lender, centered on major infrastructure, energy, and logistics projects such as Hambantota Port and Colombo Port City. While these initiatives have upgraded connectivity, stabilized finances during crisis, and broadened cooperation into poverty reduction, agriculture, renewable energy, and cultural exchange, they have also intensified concerns over debt sustainability, environmental impact, and political autonomy, amid India's and Western powers' suspicions and Sri Lanka's volatile domestic politics. The chapter argues that the future of the partnership hinges on shifting from loan-heavy mega-projects toward sustainable debt management, innovative financing, greener and digital sectors, and more locally adapted, transparent modes of cooperation.
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