Port City Colombo, a massive urban development project in Sri Lanka, is a focal point of China’s Belt and Road Initiative (BRI) and a significant hub in the 21st Century Maritime Silk Road. Developed by China Harbour Engineering Company (CHEC) Limited, a subsidiary of the Chinese state-owned China Communications Construction Company Limited (CCCC), the project has garnered both high economic hopes and considerable geopolitical concerns.
Development and Chinese Involvement
The construction of Port City Colombo officially began in 2014, with former Sri Lankan President Mahinda Rajapaksa and Chinese President Xi Jinping in attendance. CHEC has made substantial investments in the project, starting with the crucial land reclamation and infrastructure construction.
While Sri Lanka maintains sovereignty over the project, 43% of the saleable area of the reclaimed land is leased to the Chinese company for 99 years. This long-term lease arrangement has been a key aspect of the project’s financing and operation. The overarching goal for Sri Lanka is to transform Colombo into a major regional financial and business hub, akin to Dubai or Singapore.
Connections to China: Maritime, Not Terrestrial
It’s important to clarify that there are no direct road or rail links between Colombo Port City and mainland China. This is geographically impossible due to the vast distance and the Indian Ocean separating the two.
Instead, Colombo Port City’s connection to China is primarily through maritime trade routes and strategic port development:
Maritime Trade: The city’s strategic location on major international shipping lanes in the Indian Ocean makes it a crucial point for maritime trade. Ships transport goods between China, Sri Lanka, and other parts of Asia, Africa, and Europe via these sea routes.
Port Development: Chinese companies, particularly CHEC, have heavily invested in and developed significant port infrastructure in Sri Lanka, including parts of the Port of Colombo and the Hambantota Port. These ports serve as vital nodes along the Maritime Silk Road, facilitating the flow of goods and boosting trade between the two countries.
Logistics Hub: The vision for Colombo Port City is to become a major regional financial and business hub. This would naturally necessitate robust sea and air freight connections to global markets, including China, to support its economic activities.
Dual-Use Potential and Geopolitical Concerns
Despite being officially presented as a purely commercial and financial center, Colombo Port City’s dual-use potential is a significant concern for regional powers, particularly India, and for international observers.
Concerns about potential military or strategic use stem from several factors:
Strategic Location: Sri Lanka’s position on vital international shipping lanes in the Indian Ocean gives any significant port infrastructure there inherent strategic value.
China’s Naval Expansion: The expanding blue-water capabilities of China’s People’s Liberation Army Navy (PLAN) necessitate logistical support and resupply points in the Indian Ocean. While China denies military intentions for Port City, its extensive infrastructure, including deep-water berths, could theoretically be adapted for future naval support.
Precedent with Other Chinese-Built Ports: Similar Chinese-built commercial ports in other countries, such as Gwadar in Pakistan or the Chinese military base in Djibouti, have raised suspicions of eventual military utility or access for the PLAN, setting a precedent that fuels these concerns.
Debt Trap Diplomacy: Critics argue that the heavy debt incurred by Sri Lanka for projects like Port City (and the Hambantota Port before it) could give China leverage, potentially leading to concessions that include strategic access or military use if Sri Lanka faces further economic difficulties.
Indian Security Concerns: India views China’s increasing presence in the Indian Ocean with suspicion, perceiving it as a potential challenge to its regional security. India has responded with joint naval exercises and intelligence-sharing agreements with Sri Lanka.
Sri Lankan Sovereignty: While Sri Lankan officials assert full sovereignty over Port City, clauses in the agreements, especially the long-term land leases to Chinese entities, have raised questions about the extent of future control and potential implications for its independence.
Sri Lankan officials consistently deny any military intentions for Port City, emphasizing that the Sri Lankan government retains control over security and defense matters within the zone. Nevertheless, the underlying infrastructure, strategic location, and China’s long-term geopolitical ambitions mean that the dual-use potential of Colombo Port City remains a subject of ongoing debate and international scrutiny.