BEIJING—Sri Lankan President Anura Kumara Dissanayake concluded a four-day visit to China on January 17, marking a pivotal moment in Colombo’s effort to balance relations with Beijing and New Delhi. During his visit, President Dissanayake met with Chinese President Xi Jinping and senior officials, culminating in the signing of 15 agreements aimed at bolstering economic and technological collaboration.
The agreements focus on aligning China’s Belt and Road Initiative (BRI) with Sri Lanka’s 2030 digital economy blueprint, underscoring Beijing’s deepening involvement in the island nation. Among the highlights was a proposal from President Xi to elevate bilateral relations to a “China-Sri Lanka Strategic Cooperative Partnership with sincere mutual assistance and everlasting friendship,” a status previously accorded to Pakistan and the Maldives.
This trip follows Dissanayake’s first international visit as president to India in December, reflecting Sri Lanka’s delicate dance between two regional powerhouses. Both nations are critical to Sri Lanka’s economic recovery, with Colombo heavily reliant on financial assistance and trade partnerships to navigate a crippling economic crisis.
China pressed Sri Lanka to expedite policies facilitating the $4.5 billion SINOPEC refinery project at Hambantota Port, a cornerstone of Chinese investment in the country. The refinery is expected to enhance Sri Lanka’s petroleum processing capacity significantly. Deputy Director General Zhang Maoming of China’s Ministry of Foreign Affairs had raised the issue in a meeting earlier this month, emphasizing China’s expectation of preferential treatment for the project.
China also urged Sri Lanka to adopt the “One China Principle” in its joint communiqué, a semantic shift from the more commonly used “One China Policy.” This demand aligns with Beijing’s broader strategy of reinforcing its claim over Taiwan while discouraging international engagement with the island.
President Dissanayake reaffirmed Sri Lanka’s support for China on sensitive issues related to Xizang (Tibet) and Xinjiang. While these statements bolster bilateral goodwill, they have drawn criticism for appearing to legitimize actions that international human rights organizations have condemned as violations of cultural and religious freedoms.
Sri Lanka’s economic ties with China have long been a double-edged sword. The Hambantota Port, funded by Chinese loans, has become a symbol of the so-called “debt trap.” Unable to service its debt, Sri Lanka leased the port to a Chinese state-owned operator on a 99-year lease in 2017. Similar controversies surround projects like the Colombo Port City and Mattala Rajapaksa International Airport, which have faced allegations of environmental damage and displacement of communities.
China’s strategic ambitions in the Indian Ocean, including the docking of research vessels with potential dual-use capabilities, have heightened security concerns. In October 2023, Sri Lanka allowed a joint marine scientific research mission aboard the Chinese vessel Shi Yan 6, despite objections from India and the United States. In response to mounting pressure, Colombo recently imposed a one-year moratorium on foreign research vessels in its waters to avoid further diplomatic tensions.
For President Dissanayake, the challenge lies in navigating the fine line between economic necessity and geopolitical alignment. Critics argue that Sri Lanka’s growing reliance on Chinese financing has compromised its sovereignty, limiting Colombo’s ability to negotiate favorable terms.
The Dissanayake administration is under pressure to recalibrate its foreign policy, reducing overdependence on China while maintaining agency in infrastructure planning and implementation. Balancing relations with China and India will be critical as Sri Lanka seeks to stabilize its economy and address pressing development needs.
As the Indian Ocean emerges as a geopolitical hotspot, Sri Lanka’s role in the region will remain under scrutiny. Whether President Dissanayake can assert a more independent stance in his dealings with Beijing remains a key question for his administration.