Skyscrapers, many of them belonging to leading European banks, stand illuminated in the city center on Oct. 31, 2012, in Frankfurt, Germany. (Photo : Getty Images)
Among China's most controversial and geopolitically contemptuous development projects is the Colombo financial city. It's a 270-hectare business district being constructed over a reclaimed land near the coast of Sri Lanka's capital.
As soon as the project initiated back in 2014, India started to have deep reservations regarding Chinese intentions. And this was quite a logical reaction from China's rather hostile neighbor. Given the $1.4 billion worth new city flooded with skyscrapers, malls and hotels, India isn't quite happy about China's economic influence in this region.
According to Forbes, all the foreign direct investment stems from China which is also why the country has a fixed 50 hectares of permanent freehold rights to itself. The idea that the rising super power will have its very own outpost near the shores of Tamil Nadu has sparked India's paranoia.
The reason for this paranoia is due to the fact that Colombo will soon become one of China's major stations along the Silk Route among other ports in Bangladesh as well as Pakistan. India has been surrounded by what is dubbed as a "string of pearls" as mentioned by The Diplomat.
Along with the aforementioned apprehensions that India has regarding this project, it is most worried about how China will observe an expansion in its naval interests and exercise its security presence near India. By these means, India's geopolitical position is being highly compromised.
The following decade would see the Colombo project become a frontline between India and China, with each country trying to assert its geopolitical position over the other. However, China remarks that any third party can participate in the project.
The Asia Times reported that China's ambassador to Sri Lanka invited India last month to participate in the project. The former has claimed that it intends no hostility and that India should remind itself of the good business relationship it has with China.
The Commerce and Industry Minister of India, Mr. Sitharaman announced that over some years, India's investment project will be initiated in Sri Lanka in which a total of $2 billion will be invested in the Colombo project.
Sri Lanka is about to experience the largest FDI boom of about $13 billion of which two-thirds of the amount is attributed to China. Sri Lanka's largest infrastructure project ever once completed will have immense potential of become a financial hub, rivalling Dubai and Singapore in the region.
