International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue XI, November 2020 | ISSN 2321–2705

Sino – Lanka Relations: A Critical Study on Chinese Importance in Sri Lankan Economic Development

Abdur Rahman Mohammad Thamim¹, Md Mustafijur Rahman², Abu Rushd Muhammed Shaikh³, Mohammad Shakhawat Hossain^4
1Lecturer, Department of International Relations, Bangladesh University of Professionals (BUP), Bangladesh
²M.Phil Researcher, University of Chittagong, Bangladesh
³M. Phil Researcher, University of Dhaka, Bangladesh
⁴University of Dhaka, Bangladesh

Abstract: China as an economic giant, desires for strategic interest in Asian countries to counter Indian rising. Sri- Lankan geopolitical location attracts China so that it can create a new hegemonic dimension in the Indian Ocean. This research aims to critically analyze to what extend Sri Lanka is more important to china and how china influence Sri Lanka’s economic development. Besides this paper focuses on how political, economic and strategic interests of the China works behind to make Sri Lanka more and more dependent on them with the economic investment to Lankan projects and trade activities. To find the answers, it aims to convince the changes in economic conditions in Sri Lanka due to the power and investments of China as their strategic plans. Chinese importance towards Lankan economy is discussed with neo-realism theory, realism and liberalism with the support of critical theories in International Relations. Relating Chinese strategy in Sri Lanka, economic development projects highlighted by China, power expansion in the Indian Ocean and Chinese hiding intention aspects are correlated in this paper. In this process, several critical areas have also been highlighted and connected.

Keywords: Realism, Belt and Road Initiative, String of pearls, Hegemony, Strategic culture, Investment policy

I.INTRODUCTION

In the present world, corruption and political instability have a negative effect on growth and development. Openness, share of investment in GDP, investment in transport and communication, development of financial system and technology diffusion and innovation are considered as one of the governance-related factors which positively impact on the growth. Market distortions, inflation, budget deficits and share of government spending in GDP, on the other hand, are considered as the second category of variables which reflect the institution and negatively affect economic growth. All of the evidence shows that effective economic policymaking has to be coupled with strong institutional arrangements to sustain economic growth and social development. China and Lanka have undertaken smooth extensive economic relations during the past three decades starting in 1978. At the period economic reforms were introduced, both nations have faced similar standards