Shifting sands in South Asia

China has become a topic of discussion in South Asia over the past few days.

- SMRUTI S PATTANAIK

Whether it is Sri Lankan President Anura Kumara Dissanayake's state visit to China from January 14 to 17, during which he signed 15 MoUs; the India-China Foreign Secretary-Foreign Minister level talks; six Chinese nationals in Pakistan filing harassment cases against the Sindh police; China aiming to assist in training students studying in institutions managed by Jamaat Islami Bangladesh - media coverage like this speaks volumes about Beijing's growing engagement with South Asia and India's strategic gains and losses.

China is a vital destination for the political leaders in South Asia. It serves as a strategic signal to India and facilitates investment for new projects with a request to reschedule debts. During his visit to China, Dissanayake successfully signed a $3.7 billion investment from Sinopec (a petroleum refining corporation) for an oil refinery in Hambantota, Sri Lanka. An agreement with the China EXIM Bank and the China Development Bank to restructure Sri Lanka's debt to China will likely help secure the release of the IMF's next tranche of $2.9 billion disbursement.

The joint statement emphasised partnering on 'high quality' Belt and Road cooperation. Sri Lanka pledged to support China's position on Xizang and Xinjiang. They agreed to 'jointly open up new space for win-win development of higher standard, stronger resilience and greater sustainability'. This visit was viewed as Dissanayake's attempt to walk the 'tightrope' between India and China. He visited India last year, shortly after assuming the presidency.