In 2014, a Chinese submarine docked at Colombo, Sri Lanka’s capital, setting off alarms about China’s expanding military footprint. The first phase of the Hambantota port project was a $307 million loan at 6.3 percent interest. Putting political ambitions ahead of market demands, this approach failed to consider Hambantota port within a larger development strategy. By 2015, some 95 percent of Sri Lanka’s government revenue was going toward servicing its debt, and the government initiated debt renegotiations with China. India, for example, has expressed interest in taking over the international airport near Hambantota port.

Source: Sunday Times April 03, 2018 01:30 UTC