INTERNATIONAL FRAME &
Tamil  Struggle for Freedom : China

'China, a benign and sincere friend of Sri Lanka'
 -  Sri Lanka Foreign Minister Lakshman Kadirgamar, 9 April 2005

"The Sri Lankan government has been able to disregard international concern over its civil war with Tamils because of financial and military backing by China, a senior former Indian intelligence official was quoted saying on Saturday. The Times newspaper said China has replaced Japan as Sri Lanka's biggest foreign donor giving the island-nation nearly a billion US dollars last year. By comparison, the US gave $7.4 million last year, and Britain 1.25 million pounds."

COLOMBO: China and Sri Lanka on Monday initialled an agreement worth $360 million for the construction of the Hambantota harbour in the south.

The agreement was signed by the representatives of the China Harbour Engineering Company Limited and the Sino Hydro Corporation Limited and the Sri Lanka Ports Authority.

The pact is a follow up to the recent visit of President Mahinda Rajapaksa to Beijing. Eight agreements including one for the development of the Hambantota district zone were concluded during the visit. "This is a large scale investment project granted from the Chinese Government as a direct and immediate response to the President Mahinda Rajapaksa's request made during the state visit to China recently," said an official statement.

It said Mr. Rajapaksa had instructed deputy chairman of the Sri Lanka Ports Authority Priyath Bandu Wickrama to commence construction by June. The Chinese government will fund 85 per cent of the cost. The statement said the Government had the environmental impact assessment and the progress report. The port has the potential to provide direct employment to 6,000 persons and indirect employment to 50,000. "

"China's oil quest is set to reach the Mannar area of Sri Lanka adjoining the likely oil/gas bearing Cauvery basin of South India. A Chinese energy foothold in this key area has been facilitated by the Government of President Mahinda Rajapakse to balance an Indian presence in this area."

" Recently, Sri Lanka allocated an exploration block in the Mannar Basin to China for petroleum exploration. This allocation would connote a Chinese presence just a few miles from India's southern tip, thus causing strategic discomfort. In economic terms, it could also mean the end of the monopoly held by Indian oil companies in this realm, putting them into direct and stiff competition from Chinese oil companies....It is Sri Lanka's strategic location that has prompted Beijing to aim for a strategic relationship with Colombo..."