China has requested 15,000 acres of land in Southern Sri Lanka to create a Special Economic Zone (SEZ), Sri Lankan newspaper Daily Times reported.         

"The Chinese have requested 15,000 acres of land from the Hambantota district to commence different industries. That itself will create one million jobs," Sri Lankan minister Malik Samarawickrema said.  

Like Us on Facebook

However, China will have to be content with the fact that Sri Lanka has also invited its neighbor India to create a SEZ in the region. The Sri Lankan government will ask Indian companies to set up pharmaceuticals and auto spare manufacturing units in the region.

According to local media reports, an Indian delegation will visit Sri Lanka next week to discuss the project, while a Chinese delegation will visit a week after that. The Chinese delegation is expected to hold talks on a Free Trade Agreement (FTA), which is likely to be signed in 2017.

New Delhi is Wary of China's Expansion Plan in Sri Lanka      

Over the years, the Indian government has been visibly disturbed by China's continuous pursuit to increase its influence in prominent South Asian countries. India perceives this as China's attempt to encroach into its region of influence.

New Delhi was especially miffed with Sri Lanka's ex-President Mahinda Rajapaksa's overtly friendly policies towards China, which resulted in huge Chinese investment into the island nation. However, current President Maithripala Sirisena's moderate policies towards China have managed to calm officials in New Delhi.

Experts say that Sirisena will continue to follow a restrained foreign policy toward China, but will not compromise on Chinese investment to please New Delhi.

Tagschina, Sri Lanka, India and Sri Lanka, China and Sri Lanka, India and China