On the island of Sri Lanka, strategically located along one of the most important global trade arteries, the world’s top two economies are vying for influence.
After years of China spending hundreds of millions of dollars to develop port infrastructure in the South Asian nation, the US has entered the fray with the US International Development Finance Corporation (DFC) today announcing it has committed $553m to support the development of a deepwater shipping container terminal in the Port of Colombo in partnership with John Keells Holdings and Adani Ports & Special Economic Zones Limited (APSEZ).
The Chinese already have an extensive footprint across the island, including terminals in Colombo and Hambantota.
US ambassador to Sri Lanka Julie Chung said, “This financing is symbolic of the United States’ long-standing commitment to the development and well-being of the people of Sri Lanka. Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific.”
The DFC was founded in December 2019 and is seen by international commentators as a riposte to China’s Belt and Road Initiative. Among other outlays it has made in its first four years are a significant contribution to reestablish a shipyard in Greece.
It would be great to watch how Columbo and Vizhingam pan out.