All is not well between the world’s two largest economies, America and China. A situation of conflict is arising between the two countries on many issues. Meanwhile, America is working to reduce China’s growing influence in different parts of the world. These efforts of America have got a big support from Gautam Adani in South Asia. America hopes a port of Adani will reduce China’s growing influence in Sri Lanka.
$553 Million Finance
According to a Bloomberg report, Adani Group is developing a port in Sri Lanka. Adani’s port terminal is being built in Colombo, the capital of Sri Lanka. America is going to invest heavily in that port terminal. America will provide Finance of 553 million dollars for Adani’s port terminal. America hopes that this port of Adani can prove helpful in reducing China’s influence in Sri Lanka.
Deep Eater Terminal Being Built in Colombo
It has been reported in the report that the US government agency International Development Finance Corporation will provide 553 million dollars for the deep water waste container terminal being built in Colombo. This is the International Development Finance Corporation’s largest infrastructure investment in Asia. IDFC says that this investment will accelerate the economic growth of Sri Lanka.
China Invests So Much In Sri Lanka
Sri Lanka’s geographical location in South Asia is critical from a strategic point of view. This is why India and America face problems due to China’s increasing influence in Sri Lanka. China has invested heavily in Sri Lanka. By the end of last year, China’s investment in Sri Lanka had grown to about $2.2 billion. Most of China’s investment is in the form of loans, and China’s expensive loans significantly contributed to Sri Lanka’s recent economic crisis. This is why local people in Sri Lanka have staged aggressive protests several times against China’s investment.
America Expects This From Adani
China has developed the Hambantota Port in Sri Lanka. The use of this port in the southern part of Sri Lanka is minor, but Hambantota Port alone contributes the most to China’s total debt to Sri Lanka. The US government has on several occasions described Hambantota Port as part of China’s debt trap strategy, which China has always denied. America feels that Adani’s deep water terminal port being built in Colombo can become a counter to China’s Hambantota Port.
