The growing Sri Lanka- China – Pakistan economic and military relationship poses threat to India

Sri Lanka has signed a $1.1bn (£837m) deal with China for the control and development of the southern deep-sea port of Hambantota.  Under the proposal, a state-run Chinese company will have a 99-year lease on the port and about 15,000 acres nearby for an industrial zone. Sri Lanka’s government says money from the deal will help repay foreign loans. With the island nation’s total debt standing at $64 billion (Rs 41,000 crore), almost 95 per cent of all government revenue goes towards debt repayment.

The deal had been delayed by several months over concerns that the port could be used by the Chinese military. The government has given assurances that China will run only commercial operations from the port, on the main shipping route between Asia and Europe.