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India looks to counter China’s growing influence in Sri Lanka

Apr 6, 2025, 6:15pm EDT
South Asia
Indian Prime Minister Narendra Modi and Sri Lankan President Anura Kumara Dissanayake
Thilina Kaluthotage/Reuters
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India and the United Arab Emirates pledged to develop an energy hub in Sri Lanka as New Delhi looks to counter China’s growing influence in the island nation.

Beijing has provided Sri Lanka — which is situated on one of the world’s busiest shipping routes —with billions in development loans and recently signed a deal for an oil refinery.

India, concerned by China’s expanding footprint, has also worked to grow its ties, giving Colombo substantial financial aid following the island’s 2022 economic collapse.

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Sri Lanka is emblematic of the larger struggle playing out in what New Delhi considers its backyard: China has bolstered its economic and military ties across the Indian Ocean, including investing in 46 commercial ports.

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