Two strategic projects in Northern Province of Sri Lanka have become bone of contention for two big Asian countries – China and India, as both the countries are focusing to get hold of two unique projects located in the region. Point Pedro Fisheries Harbour located in Jaffna one such project, while the other project is the Renewable Energy Project in the Kawdarimunai area in Kilinochchi.
Point Pedro Fisheries Harbour
It is a fishery harbour, which is currently being used by the fishermen. Of late, Chinese Ambassador to Sri Lanka Qi Zhenhong has visited Jaffna and expressed his interest in the area.
Point Pedro port development project was earlier launched in August 2019 with a financial assistance of Rs 12,600 million by the Asian Development Bank (ADB). But the project has been halted later on.
The Sri Lankan Fisheries Minister Douglas Devananda said recently that after ADB has halted the project, resumed discussions have made the ADB express interest in the project and have agreed to fund the project, in addition to the two countries India and China, several other investors have also shown interest to invest in the project.
But the minister has said that Sri Lanka’s priority is the ADB. Because the development project is not simply about the Port development, but also includes a number of other proposed related projects in the Northern Province including several jetties related to aquaculture.
When asked whether the Minister’s choice lies with India or China to enter into an agreement, the minister replied by saying that ADB would be the priority of the country, but region-wise, the priority would lie with India.
Kawtharimunai Renewable Energy Project
This projectlocated in the Poonaryn Divisional Secretariat in the Kilinochchi District. The Sri Lanka Sustainable Energy Authority (SLSEA) has recently requested the Poonaryn Divisional Secretariat to allocate land for renewable energy projects on the south coast of Kawtharimunai. A gazette notification was issued on April 17, 2014 for the acquisition of lands in this regard.
The Chinese-Sri Lankan sea urchin breeding project is located close to the proposed site of the Kawdarimunai Coastal Wind Power Plant.
The parent company of this project is located in Ariyalai, Jaffna, same place where the Chinese Ambassador to Sri Lanka Qi Zhenhong recently visited. The distance from Ariyala in Jaffna to Kawtharimunai in Kilinochchi is only 6 nautical miles.
The Minister of Fisheries, Douglas Devananda, speaking of the Kawtharimunai Renewable Energy Project said that Sri Lanka currently does not have the necessary funds for the development work, and when other countries come forward, Sri Lanka can accept whoever comes forward to invest as long as it does not harm the people and the country.
While China and India are thus competing for new projects, they have already acquired administrative powers in a number of economic hubs in Sri Lanka as well.
A Chinese company currently owns the majority of the high-profit business segment in the Hambantota Port. The country also owns a majority stake in the Colombo South Port and the neighboring Port City, which is also a Chinese project.
Business Magnate Adani, of India now owns a majority stake in the Western Terminal of the Port of Colombo, which is located close to the Port City and the Colombo South Port.
Meanwhile, Energy Minister Udaya Gammanpila had spoken to a newspaper in India and said that an agreement would be reached with India within a month for the Trincomalee oil tank complex project.
The Indian Oil Company already owns 15 of the 99 tanks built by the British and the agreement will decide on the remaining tanks. This oil tank complex is located close to the Trincomalee Port as well. Accordingly, India and China have already occupied a number of strategically important coastal locations in the country, in the context of directing their attention towards many other places of special importance in Sri Lanka.
