Sri Lanka Will Permit Chinese 'Research' Vessel Yuan Wang 5 To Dock At Hambantota

Reports say that despite Indian concerns Sri Lanka will allow the Chinese 'research' ship Yuan Wang 5 to berth at Hambantota port.

India doesn't like the ship operating around Indian waters. The ship can potentially snoop on sensitive Indian installations and space assets.

• Yuvan Wang 5 is said to be a 'dual use' ship capable of maritime monitoring missions and transoceanic aerospace observations.

• Six of India's naval installations and India's only spaceport are in the region.

• Two nuclear installations - Kalapakkam and Kudankulam are also on the south-eastern seaboard.

• India and the US have reportedly tried to get Sri Lanka to disallow the Chinese vessel but to no avail.

Sri Lanka's Hambantota port has also been a concern for India. The port was funded through Chinese loans to the tune of US$1.3 billion - some of it at concessionary rates and some at commercial interest rates.

• Some loan agreements stipulated that specific Chinese companies would be the construction contractors for the port.

• The port began operations in 2011. By 2016 it had accumulated losses of over US$300 million.

• Sri Lanka subsequently leased a significant stake of the port to Chinese company for US$1.12 billion - the lease period was 99 years.

• This money was not used to repay the Sri Lankan loans taken for the construction of the port.

• Instead the money was used to pay off other short term loans and to strengthen Sri Lankan Rupees vis a vis the US Dollar.