21 injured in clashes in Sri Lanka over China port deal

[HeinzGud]

AMBALANTOTA, SRI LANKA


At least 21 people were injured Saturday in violent clashes between Sri Lankan government supporters and villagers marching against what they say is a plan to take over private land for an industrial zone in which China will have a major stake.

Police used tear gas and water cannons to try to break up the clashes, which took place as Prime Minister Ranil Wickremesinghe was attending an opening ceremony for the industrial zone, located near the port city of Hambantota, about 240 kilometers (150 miles) southeast of the capital, Colombo.

The clashes began when government supporters started throwing rocks at villagers who were marching to the ceremony site. The protesters, organized by the opposition and led by Buddhist monks, responded by throwing rocks at the government supporters. A group that appeared to have been transported to the area by the government joined in attacking the protesters with poles.

Twenty-one people, including three police officers, were taken to a government hospital in Hambantota, a hospital official said.

Sri Lanka's government has signed a framework agreement for a 99-year lease of the Hambantota port with a company in which China will have 80 percent ownership. Officials also plan to set up a nearby industrial zone where Chinese companies will be invited to set up factories. The villagers and monks are opposed to it and demand their residential and farmlands be spared.

A court had issued a restraining order on the protest, saying it could lead to unrest, but the protesters defied it.

Wickremesinghe inaugurated the industrial zone despite the clashes. Speaking at the ceremony, China's ambassador to Sri Lanka, Yi Xianliang, said that his country hopes to invest $5 billion in the region within the next five years, and that the new industries are expected to generate 100,000 jobs.

China invested over $1.2 billion in the port in what some analysts call its "string of pearls" strategy in countries surrounding its rival India. Although the project has seen losses since 2010, Sri Lanka's government, at first critical of the enterprise, approached China to seek help to make it viable.

Lawmaker D.V. Chanaka, one of the protest organizers, said he fears the port area will become a "Chinese colony."

"We are against leasing the lands where people live and do their farming, while there are identified lands for an industrial zone," Chanaka said. "When you give away such a vast area of land, you can't stop the area from becoming a Chinese colony."

After the lease expires, it can be negotiated for another 99 years, according to the framework agreement, whose terms are still being negotiated. The government also has proposed to lease 15,000 acres (6,070 hectares) in Hambantota district and adjoining Moneragala district for the industrial zone.

The Rev. Magama Mahanama, from a group calling itself the Monks' Organization to Protect National Assets, said that the clergy, following an ancient tradition, would issue a decree to the government to stop the leasing. Historically, kings in predominantly Buddhist Sri Lanka are said to have abided by decrees issued by Buddhist monks.

"It's a way of conveying the message that the monks are not for it," Mahanama said. "Ninety-nine years means at least two generations. When they (the Chinese) take root here, what's the guarantee that we will have it back? There is a major threat of cultural erosion and demographic change."

Wickremesinghe, speaking to reporters earlier in the week, said the partnership arrangement was necessary to free Sri Lanka from the debt incurred to build the port. He blamed the debt on former President Mahinda Rajapaksa, whose government was friendly to Beijing.

Wickremesinghe said the industrial zone was necessary to make the port and the nearby Chinese-financed airport, also running at a heavy loss, viable.

"The port can't be taken away," he said, adding that his country's former British colonial rulers did not take away the Trincomalee harbor or the Colombo port.

http://www.heraldonline.com/news/business/article125126889.html

http://www.bbc.com/news/world-asia-38541673

 

[Srinivas_K]

Seems a message from the civil society to the chinese to not to take things for granted!

 

[HeinzGud]

Please enter a message with at least 30 characters.

 

[ezsasa]

Sinhalese have been wary of foreign influence for a long time, even Indian influence. Their experience with foreign influence was not good, case in point LTTE.

They have consciously kept Indian influence at bay, even they prefer cars from SE Asia to Indian cars. Nothing wrong in that, in fact it's their prerogative.

Obviously the Chinese trying to enter thru backdoor will face resistance.

But Chinese are even more determined to get a foothold in IOR , so let's see how this plays out.

 

[Akshay_Fenix]

What were these stupid politicians thinking, 200 years lease for something that is sucking money out of the country.

 

[HeinzGud]

Sinhalese have been wary of foreign influence for a long time, even Indian influence. Their experience with foreign influence was not good, case in point LTTE.

They have consciously kept Indian influence at bay, even they prefer cars from SE Asia to Indian cars. Nothing wrong in that, in fact it's their prerogative.

Obviously the Chinese trying to enter thru backdoor will face resistance.

But Chinese are even more determined to get a foothold in IOR , so let's see how this plays out.

Well about Indian cars. They are cheap and unreliable in the long run. That's why Sri Lankans are opted for Japanese imports which are more comfortable and long lasting. However, Indian buses like Leyland and Tata are more famous in Sri Lanka and well as the tuk tuks. It's just simply the usability of the vehicles rather than anti-Indian stance of the people which makes Indian cars unpopular in Sri Lanka.

 

[amoy]

To be frank, Chinese investors, as well as any others Japanese, or Western, should refrain from such ventures in face of local resistance. Otherwise more losses may be incurred.

Instinctively most investors are risk evasive. It did happen often, like Tata dropped off their land acquisition plan in West Bangal and turned to Gujarat (?) for Nano, and Salim Group gave up India... Not everyone shares the same vision of development or fiscal balance.

There are interest clashes. Some (farmers in this case) don't see anything in this for themselves unlike others, or expect more compensation than usual, sometimes compounded by religious and cultural sentiments, plus local politics. It's often hard to balance. If being pushed ahead regardless, it doesn't augur well at this stage.

Chinese (or E. Asian) thinking works somewhere, but is not applicable elsewhere probably. The differences must be respected imo.

 

[IndianHawk]

Well about Indian cars. They are cheap and unreliable in the long run. That's why Sri Lankans are opted for Japanese imports which are more comfortable and long lasting

That is changing pretty fast. Indian manufactured cars are exported to Europe and Suzuki itself imports Indian made vehicles back in Japan. So your logic seems misplaced

 

[Mikesingh]

Another Chinese naval base coming up in our backyard. First it was building the Gwadar port and now Hambantota both in the garb of establishing so called economic zones which is a facade for their grand strategy of dominating the Indian Ocean region, all part of the 'String of Pearls' strategy to encircle India. Those who suggest that this is purely economic in nature are naive.

This is a failure of our diplomacy and impinges on our national security. We need to wake up to Chinese designs and nip this project in the bud before it is too late.

 

[salute]

Well about Indian cars. They are cheap and unreliable in the long run. That's why Sri Lankans are opted for Japanese imports

cheap ??? maybe you are using cars from 1995 .

 

[square]

next pakistan......in even bigger way !!!!

 

[AmoghaVarsha]

No one likes to handover their nation to foreigners esp. to then Chinese.The Lankans have understood that China basically want Lanka to be a colony and what the Chinese did in the name of investment.

 

[amoy]

There're always two sides to a coin.

On one hand many Lankans cheer the upcoming industrial zone and port/airport upgrade that're supposed to create employment and revenues. On the other hand hundreds were protesting. Most protesters were not concerned local farmers at all, and most land was reported to be state-owned. Many were said to be carried from outside the area organized by the opposition. :biggrin2:

Is it anything new to whip up nationalistic fervor for certain agenda?? Nope. It happens time and again.

Back in 1980s there were also heated debates on SEZs among Chinese. And uproars rose especially when a tract of land was on Hainan Island was about to be leased to a Japanese conglomerate (for 70 years) to develop an industrial zone encompassing a deepwater port, auto makers (Mazda?) and petrochemical. Some of the opposition was "ideological" - like to "capitalist exploitation"; some "nationalistic" - to "imfringement of sovereignty" (colonized by Japanese WOW); some "economical" - why should foreign firms make all the profit when we could keep it ourselves?

They all made good arguments didn't they?

De javu, isn't it?

 

[IndianHawk]

There're always two sides to a coin.

On one hand many Lankans cheer the upcoming industrial zone and port/airport upgrade that're supposed to create employment and revenues. On the other hand hundreds were protesting. Most protesters were not concerned local farmers at all, and most land was reported to be state-owned. Many were said to be carried from outside the area organized by the opposition. :biggrin2:

Is it anything new to whip up nationalistic fervor for certain agenda?? Nope. It happens time and again.

Back in 1980s there were also heated debates on SEZs among Chinese. And uproars rose especially when a tract of land was on Hainan Island was about to be leased to a Japanese conglomerate (for 70 years) to develop an industrial zone encompassing a deepwater port, auto makers (Mazda?) and petrochemical. Some of the opposition was "ideological" - like to "capitalist exploitation"; some "nationalistic" - to "imfringement of sovereignty" (colonized by Japanese WOW); some "economical" - why should foreign firms make all the profit when we could keep it ourselves?

They all made good arguments didn't they?

De javu, isn't it?

It's an old debate. Land acquisition remains a messy thing still.

Srilanka being a small island the questions of sovereignty nationality becomes acute.

 

[Krusty]

Srilanka being a small island the questions of sovereignty nationality becomes acute.

Means Sri Lankans have a spine and value their sovergnity as compared to deeper than ocean and sweeter than honey friends of China.

 

[HeinzGud]

That is changing pretty fast. Indian manufactured cars are exported to Europe and Suzuki itself imports Indian made vehicles back in Japan. So your logic seems misplaced

Indian made vehicles are of lesser quality. It's a well known fact. Otherwise, how can Indian manufacturers churn out cars with such a low prize tags. Obviously they have sacrificed a thing and two to get the lower prize and the higher fuel mileage.

 

[IndianHawk]

Indian made vehicles are of lesser quality. It's a well known fact. Otherwise, how can Indian manufacturers churn out cars with such a low prize tags. Obviously they have sacrificed a thing and two to get the lower prize and the higher fuel mileage.

Low cost of labour . Low cost of engineering talents. Low cost of land .
Low taxation on production. Low import duty on raw materials required mostly domestically sourced.

Indian made cars are sold in Europe that speaks for quality itself as European don't compromise on either safety or product reliability. Baleno a car made in India is being sold in Japan . Fulfilling all criteria required.

Volkswagen also manufactures in India and exports worldwide. Same with Ford.

It is also true that same companies produce lower spec lesser quality version cars for people with low purchasing power.

Global automakers are capable of producing same car in India with 15-20% less cost than EU or USA . Car is the same and so is quality.

For example Mercedes manufacturers in India too does that somehow reduces quality??

 

[amoy]

It's an old debate. Land acquisition remains a messy thing still.

Srilanka being a small island the questions of sovereignty nationality becomes acute.

The crux of this issue is no longer "land acquistion", or "sovereignty" IF it's true that most of land is STATE OWNED already.

POLITICS is always tricky. :biggrin2: Those who are strongly against the port deal are the same people i.e. Rajapaksa-headed opposition that was labelled as Chinese buddies. Now with swap of roles, opposing for opposing's sake (sugar-coated in some lofty parlance)??

My wild guess is current Lankan govmt is more likely to toughen up than budge from the deal. It turns out nothing to do with land, but rather a testing moment for their resolution and credibility. Like Chinese usually put, kowtow to intimidation = LOSE FACE = weak leadership.

Sri Lankan Prime Minister Ranil Wickremesinghe appreciated China's investment in the southern economic zone and also thanked China Merchants Holdings for helping develop the Hambantota Port.

"No one can stop us from establishing a new Sri Lanka so that our youth will benefit. Like Malaysia, Singapore and China, we will also be proudly developed," the prime minister said.

Sri Lanka hails China's intention to invest in southern economic zone

 

[IndianHawk]

My wild guess is current Lankan govmt is more likely to toughen up than budge from the deal. It turns out nothing to do with land, but rather a testing moment for their resolution and credibility. Like Chinese usually put, kowtow to intimidation = LOSE FACE = weak leadership.

It's a coalition government that means it's weak by its very nature.
What I meant in my post was that big countries like India China can easily deal with outside pressure while welcoming foreign investment. But in small nations like srilanka once there is a dominant foreign player it could seriously undermine policy making and politics itself.

That fear itself is enough to drive protesters.

 

[pmaitra]

@HeinzGud, @salute, @IndianHawk,

There is no need to compare Japanese brand cars and Indian brand cars, regardless of where they are made.

Japanese brands, along with German and Italian brands, are way ahead of the rest of the world as far as automobiles are concerned. They have built an image by producing world class cars for decades. Indian brands do not carry that brand value, even if they are reasonably good.

There are two things working against Indian brands:

1. Quality and refinement.
2. Long tradition contributing to brand value.