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

Swarajya Staff

Aug 13, 2022, 09:24 PM | Updated Aug 14, 2022, 02:07 PM IST


China's Satellite tracker military ship Yuan Wang 5
China's Satellite tracker military ship Yuan Wang 5

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.


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