03/01/2007, 00.00
CHINA - SRI LANKA
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China and Sri Lanka: economic and political cooperation with India in mind

by Melani Manel Perera
The Sinhalese president is in Beijing to mark the 50th anniversary of diplomatic ties between the two countries. Eight bilateral accords were signed in different sectors. China is building the first, controversial coal-fired power station on the island and aims to contain the influence of the Indian giant in the region.

Beijing (AsiaNews) – Bilateral accords in a number of sectors – infrastructure, culture, industry, education and tourism – and strong support for each other’s domestic policies are the outcome of a visit of Sinhalese president, Mahinda Rajapakse, to China. His visit marks 50 years of diplomatic ties between the two countries. Both parties took care to underline the “great friendship” that bonds them together: China would like to balance the regional influence of its historic Indian rival on the one hand and on the other, it has launched unpopular but fruitful projects in the energy sector in ex-Ceylon. For its part, Colombo aims to win more foreign investment aimed especially at developing its backwards infrastructural sector.

Rajapakse, who has been in Beijing since 26 February, is accompanied by a high-ranking delegation of ministers and businessman; he met leaders of the economic and industrial world as well as political leaders from President Hu Jintao to Premier Wen Jiabo. The two parties signed eight Memorandums of Understanding aimed at collaboration in the fields of economy and technology, urban development, film industry, cornea donations, supply of farming equipment and exchanges between university students.

China has contributed to the construction of several structures in Sri Lanka, the seat of the Supreme Court among others. However, a joint venture between the Sinhalese government with a Chinese company for the first coal-fired plant on the island in Norochcholai will have a devastating impact on the environment.

Ties between Sri Lanka and China are traditionally good, not least with an anti-Indian motive. Until the early nineties, when the Tamil Tigers killed the ex-premier Rajiv Gandhi, New Delhi used to support the cause of the Tigers. With his visit, Rajapakse reiterated adherence to the One China principle. Beijing guaranteed Colombo its support as Sri Lanka attempts to “reach national reconciliation and maintain the territorial integrity of the country” in the face of a separatist drive by the Tamils in the north-east.

In 2006, the trade volume between Beijing and Colombo reached nearly one billion and a half dollars with an increase of 16.9% over the previous year.

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