Power Games
10 May 2017Central Bank of Sri Lanka (CBSL) Governor Dr. Indrajit Coomaraswamy's forte is not restricted to his discipline of raw economics alone.
In the wider context, it extends to the importance of playing big power games with Beijing, New Delhi and Tokyo, to Colombo's economic advantage.
Speaking at a press conference in respect of the measures taken by the Government of Sri Lanka to get out of a possible debt trap by leasing out the Hambantota Seaport, one of several white elephant investment legacies of former President Mahinda Rajapaksa leading to the island's chronic external debt situation, the Governor said that the first tranche from this lease would raise US$ 100 million, and the second, to be received three months later, another $ 300 million.
But when it was brought to his notice of Indian sensitivities, Coomaraswamy inferred that Colombo should learn to play Delhi against Beijing for its own commercial advantage.
When Premier Ranil Wickremesinghe visited New Delhi hardly three weeks ago, Indian Premier Narendra Modi, External Affairs Minister Sushma Swaraj, National Security Adviser (NSA)Ajit Doval, Foreign Secretary Subrahmanyam Jaishankar, India's High Commissioner to Sri Lanka Taranjit Singh Sandhu, Congress leader Sonia Gandhi and former Indian Premier Manmohan Singh, all raised concerns over Chinese interests in Hambantota.
Wickremesinghe in his talks assured that Chinese interests were purely commercial, a stance also taken by Coomaraswamy and more, where the latter told reporters yesterday that the country should take advantage of its strategic location to attract big power investments in the form of Chinese, Japanese and Indian investments.
The Governor inferred that Sri Lanka should play the role of a woman wooing eligible suitors. In economic parlance, eliciting demand where supply is scarce.
Modi is due to visit Sri Lanka tomorrow on account of Vesak celebrations.
Soon after that, Wickremesinghe is due to fly to Beijing in regard to China's 'one belt, one road' initiative which talks purportedly also encapsulates Chinese investments in Hambantota as well, in a debt to lease swap.
Nevertheless, these developments are taking place with Colombo at the centre stage, in the backdrop that India and China fought a bitter border war in 1962 which led to the loss of thousands of square miles of India's territory to the Chinese and hastening the death of its founder Premier Jawaharlarl Nehru, who died a broken man, two years later.
Delhi's sensitivities are that already surrounded by enemies to its east, north and west it now feels that its southern flank is also threatened due to Chinese interests, vis-à-vis Hambantota.
To India's North it's surrounded by China and Pakistan. India has also fought four bitter wars with Pakistan, beginning with the war of partition in 1947.
To the greater part of North-East and North-West, once more India finds itself surrounded by these two belligerent nations of hers, while further down to the North-East, it borders Nepal and Bangladesh with which it has uneasy relationships, while to the rest of the East and to the West it's surrounded by the Indian Ocean.
In this context, the last thing that India might want to have is China at its doorstep from the South as well, vis-à-vis a physical presence in Sri Lanka.
Coomaraswamy in his speech further said that former National Security Advisor and India's High Commissioner to Sri Lanka Shivshankar Menon in a book had referred to Sri Lanka as a floating submarine 20 miles off India's borders.
This statement of Menon, referring to Sri Lanka as a submarine is double edged.
During the latter part of the Rajapaksa regime, i.e. in 2014, two Chinese submarines docked in Colombo to Delhi's chagrin.Nonetheless, Coomaraswamy inferred to reporters that Sri Lanka should take advantage of this 'submarine' mentality that Delhi has on Sri Lanka, to the island's own advantage.
And not just Delhi and Beijing, but roping in Tokyo as well in this big power game.
Tokyo's enmity with its giant neighbour Beijing is historical, dating back to the times that Tokyo invaded Chinese Manchuria in the 1930s and coming down to the present times of China's claims to the Senkaku islands on the East China seas controlled by Tokyo, but recognized as Diaoyutai Islands by Beijing.
Coomaraswamy said that Colombo should make it clear to Delhi that its interests with Beijing is purely commercial, whilst also playing on this theme to attract Chinese, Japanese and Indian investments on to the island in 'big power games' in the overall picture.
He further said, when Modi was Gujarat Chief Minister, he made a number of visits to Beijing to attract Chinese investments. The Governor said, the value of two way trade between India and China was between $ 75-100 billion.