Anchor at Colombo port, eyes on the Indian Ocean
For more than a decade, India was concerned about China's docking of submarines and spy ships, and that country's expanding presence in Sri Lanka's critical infrastructure. Since 2014, India has pushed for connectivity in the region with its Neighbourhood First policy. In the case of Sri Lanka, the need for connectivity and presence in the port sector grew dire after the Hambantota Port was leased to China for 99 years in 2017. The crisis in Sri Lanka, offered an opportunity for India to expand its presence in the country that needed foreign direct investments and external assistance. India offered an assistance of $4.5 billion and is helping Sri Lanka with port and energy sector connectivity through grants and investments.
This aid and push for connectivity, together with India's economic growth, has given confidence to Sri Lanka in seeking India's assistance and investments. As a result, when the major stakeholder of Colombo Dockyard – Onomichi Dockyard Company – was operating under loss, the CPDLC sought help from the government of Japan and Sri Lanka. In return, Colombo requested India to increase its investments in the country. This was expected to increase the inflow of foreign money, avert further borrowing and debts, and at the same time help domestic stakeholders (who held 49% of stake in CDPLC) stay afloat.
Similarly, the push for connectivity helped India further its presence in the region and ensure that its security and interests are not compromised. For instance, in 2011, China began investing in the southern terminal of Colombo Port. In return, a build-operate-and-transfer agreement was signed, effectively leasing out the terminal to China for 35 years. Furthermore, China also invested in the Colombo Port City, a special economic zone, adjacent to the southern terminal, and secured a lease for 99 years.
China's increasing presence in Colombo port, and the fact that over 45% of transhipped cargoes of India are handled at the same port, motivated Delhi to increase its presence. In 2018, India and Japan were involved in developing the east container terminal, which was later cancelled unilaterally by the Sri Lankan government. When India expressed its concerns, Sri Lanka sought a compromise by offering the west container terminal of Colombo Port to Adani ports. With a 51% stake, the firm now enjoys a lease of 35 years in the terminal. The acquisition of Colombo Dockyard, Sri Lanka's leading shipbuilder and repair hub, further entrenches Indian position in Sri Lanka's port sector and the Indian Ocean Region.
India's commitment, interest to invest, and ability to deliver during Sri Lanka's economic crisis incentivised Colombo to shed its reservations and suspicion. On its part, China too will continue to woo Sri Lanka and other countries in the region by leveraging its economic might. India will have to continue tapping regional markets, bridge infrastructure gaps, and deliver on its promises by leveraging its economy and capital. That's the only way to secure its interests in the region.
Aditya Gowdara Shivamurthy is associate fellow, Neighbourhood Studies, ORF. The views expressed are personal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
32 minutes ago
- Time of India
Model community: Why Tibetans in India deserve more help
A long time ago, in the 1950s, China took control of Tibet. The Dalai Lama, the spiritual leader of Tibet, and thousands of Tibetans had to leave their homeland. They chose India as their new home, and since then, they've lived peacefully among us. India recently showed strong support for the Dalai Lama by saying that he alone should decide who the next Tibetan leader will be, not China. This is important because China wants to control even this decision. Tibetans in India: Peaceful and Proud Today, Tibetans live in 39 official settlements and many other places across India. They've shared their delicious food, traditional medicine, beautiful culture, and peaceful spirituality with us. Many of us know about prayer flags, momos, and the calming teachings of the Dalai Lama – all thanks to them! They have stayed peaceful, thankful, and respectful – all values that the Dalai Lama himself promotes. Meanwhile, in China, Tibetan culture is being changed, and Tibetan religion is tightly controlled by the government. But They Still Struggle Even though Tibetans have lived in India for over 70 years, they still face problems: They can't easily travel abroad . They can't own land or houses . Most of them can't get loans from banks . College and healthcare access is limited for many Tibetan youth. What Should Be Done? India has always welcomed refugees, like during the 1971 Bangladesh war, when we gave shelter to millions. So, helping Tibetans more shouldn't be hard. They've been model citizens – calm, helpful, and respectful. It's time to give them better support, like easing rules and helping them live more fully as part of Indian society. After all, they've added so much to our country — and they deserve our care and kindness in return. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Mint
33 minutes ago
- Mint
India makes a push for cheaper foreign loans in yen, rupee
India is pressing multilateral development banks (MDBs) to lend more in Japanese yen and Indian rupees in an attempt to reduce borrowing costs and manage exchange rate risks more effectively, two officials aware of the matter said. New Delhi has steadily expanded loans and official development assistance (ODA) in yen to gain from ultra-low interest rates and the rupee's appreciation against the Japanese currency. Many of these loans finance infrastructure and development projects. 'Yen rates remain close to zero, and with the rupee having appreciated significantly against the yen since early 2023, yen borrowings, including through Samurai bonds, have emerged as a compelling option," one of the two officials cited above said, requesting anonymity. Samurai bonds are yen-denominated bonds issued in Japan by foreign entities to raise money. The development assumes significance since MDBs such as the World Bank, Asian Development Bank (ADB) and the International Monetary Fund (IMF) play a central role in global finance, especially in developing economies. These institutions lend in dollar as well as other reserve currencies. ADB, which mainly lends in dollars, has also issued rupee bonds. The Asian Infrastructure Investment Bank (AIIB) too lends in yen, euro and rupees. The yen is part of IMF's special drawing rights (SDR) basket of currencies, and can be used depending on borrower preference and availability. India is pushing for loans in yen, the second official confirmed, adding "These loans and ODAs are not free, and we pay interest on them. A lot has changed now with India's rise at the global high table, and we are in a better position to negotiate our terms and conditions with the MDBs," said the second person. 'Also, given our past record, India also happens to be very attractive for these lending institutions as well, given our repayment history and the credit profile. We will follow the strategy which is in our best interest," the person added. An ADB spokesperson said the bank has received a handful of requests from India for yen-denominated loans in the last two years, with three such agreements signed in 2023 and 2024. These include the Delhi-Meerut RRTS Tranche 3 (2023), the Nagpur Metro Urban Mobility Project (2024) and the Amaravati Capital City Development Programme (2024). The ADB spokesperson pointed out that despite the rising interest in yen loans, 20 out of 22 sovereign loans signed by ADB in India in 2024 were in dollars. 'ADB's advice to borrowers is to choose the most financially advantageous termsbased on needs and risk exposure of the project and the borrower's overall external debt portfolio," the spokesperson added. Queries emailed to the spokespersons of India's finance ministry, World Bank, AIIB, IMF and Exim Bank remained unanswered. 'India is expected to expand its yen exposure further as part of a calibrated shift to longer-tenure, lower-cost financing to mitigate exchange rate risks. It will also explore greater use of the domestic currency. However, the dollar will remain dominant in the medium term, given its role as the principal global reserve currency," the official cited earlier said. According to the Reserve Bank of India (RBI) data, yen-denominated liabilities rose to 6.2% of India's total external debt at the end of March 2025, up from 5.8% a year earlier. In absolute terms, this equals $45.6 billion out of the total $736.3 billion in external debt at the end of FY25. India's total external debt rose 10% in FY25. The US dollar still dominated India's external borrowings, accounting for 54.2%, followed by the Indian rupee (31.1%), yen (6.2%), SDR (4.6%), and the euro (3.2%). While the appeal of yen financing is clear, economists caution that since India lacks a deep forex market for the yen, most conversions still happen through cross-rates with the dollar or euro rather than direct market-determined rates, adding layers of complexity. 'Rupee-denominated loans are preferable from a stability standpoint. As for yen borrowings, unless a more efficient and transparent yen market develops, the advantages remain limited. In many cases, dollar- or SDR-denominated loans might still be more practical," said Bhanumurthy N.R., director of the Madras School of Economics. India's yen borrowing strategy is gaining traction across both bilateral and multilateral channels. In FY24 alone, India signed yen loan agreements with the Japan International Cooperation Agency (JICA) worth over ¥276 billion (around ₹15,600 crore), funding metro rail, logistics, and renewable energy projects. In FY25, JICA followed up with six ODA agreements worth ¥191.7 billion ( ₹11,181 crore) to support urban transport, water infrastructure, environmental protection, and livelihood programmes, including Delhi Metro Phase IV, Chennai's desalination plant, biodiversity projects in Punjab, and an aquaculture initiative in Assam. A separate ¥84.3 billion loan for Mumbai Metro Line 3 took the year's total to ¥276 billion ( ₹15,655 crore). 'India's push to secure more yen- and rupee-denominated loans from MDBs reflects a prudent effort to lower external borrowing costs while reducing exposure to the volatility of major foreign currencies like the US dollar," said Venkatakrishnan Srinivasan, managing partner at Rockfort Fincap Llp, a financial advisory firm. 'From a bond market and risk perspective, rupee-denominated MDB funding is a strong fit. It eliminates currency mismatch, enhances debt predictability, and aligns well with India's broader strategy of deepening its local currency bond ecosystem. Yen-denominated loans, though historically low-cost, now come with added complexity due to heightened forex volatility and an uncertain interest rate trajectory in Japan," he added.
Time of India
an hour ago
- Time of India
Kolhapuri chappal gets leg-up over ‘copying' by Italian brand
Mumbai: A public interest litigation filed in Bombay high court seeks reliefs against Italian luxury fashion label Prada after it showcased open-toe leather sandals at the recent Milan Fashion Week that are "deceptively similar" to the Kolhapuri chappal. "The Kolhapuri chappal is the cultural symbol of Maharashtra and has special public sentiments attached to it. The act of copying and misrepresenting this craft in international markets effectively amounts to depriving local artisans of rightful recognition and credit for their work, who have preserved and practised this traditional art form for nearly 800 years," states the PIL filed by six advocates led by Ganesh Hingmire, an intellectual property rights expert. According to their petition, Kolhapuri chappal is protected with a geographical indication (GI). On June 22, Prada held its Spring/Summer 2026 Men's collection unveiling toe ring sandals "reportedly priced at over Rs 1 lakh per pair". There was no mention that it was Indian-inspired design. "The infringement of the design of the Kolhapuri chappal by a luxurious fashion label is without the knowledge or consent of the GI application holder or the authorised users," it adds. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai While Prada "privately accepted" its collection is "inspired by Indian artisans", this acknowledgement surfaced after widespread backlash on social media. This acknowledgement was not given to the "makers of Kolhapuri chappals, GI Registry, the govt or public at large". Prada has not issued a formal apology, and the statement appears to be a "merely superficial attempt to deflect criticism". The petition said misuse causes "dilution of the GI identity, erodes its distinctiveness and unjustly enriches the foreign brand, depriving the artisans of the right economic and reputational benefits". The PIL says: "The handicraft is the result of countless hours of meticulous labour by artisans." Thus, Prada's "unauthorised profit-oriented motive displaying sandals deceptively close to Kolhapuri chappal and inscribing the word 'PRADA' on the footwear directly undermines the livelihood and dignity of the traditional artisans and authorised users of GI". The petitioners lament that the artisan community is not financially equipped to initiate civil proceedings, does not receive adequate support from govt bodies, and lacks awareness of their community rights, leaving them vulnerable. They want "strong, decisive measures to address these violations and set an exemplary legal precedent that deters future acts of cultural misappropriation". They have prayed for restraint and a permanent injunction on Prada from "commercialising the use of so-called toe ring sandals, which is originally a GI-tagged product, Kolhapuri chappal", to direct Prada to issue a widely circulated public apology and pay compensation to artisans for "reputational and economic damages." The PIL will be heard in due course.
