China or India? Sri Lanka’s presidential election becomes a battleground for influence

Sajith Premadasa, who split from the UNP in 2019, will represent Samagi Jana Balawegaya (SJB), while Anura Kumara Dissanayake of National People’s Power (NPP), and leftist Janatha Vimukthi Peramuna (JVP) are also candidates.

The winner will decide the economic direction of the nation, which is currently in the process of implementing structural changes under a US$2.9 billion International Monetary Fund programme secured following 2022’s historic default.

Analysts say the outcome of the polls could shift the country’s delicate geopolitical balancing act between its two regional powerhouse neighbours – especially if the NPP’s Dissanayake wins a majority.

With recent political surprises in the region – including India’s Narendra Modi losing the majority in parliamentary elections, and given strained relations between New Delhi and Dhaka after the fall of Sheikh Hasina, India may be wary of supporting a single regime in Sri Lanka, says Uditha Devapriya, chief analyst at Factum, a Sri Lanka-based foreign policy think tank.

“India is obviously going to look at this election with very, very sharp eyes,” he said.

President Ranil Wickremesinghe gestures as he arrives on August 15 to submit his nomination papers for the election. Photo: Reuters
President Wickremesinghe is viewed as an astute diplomat for navigating and maintaining amicable relations with nations in conflict with each other. For instance, Sri Lanka sent migrant workers to Israel, aid to Gaza, and naval support to US operations against the Houthis in the Red Sea, even hosting the late Iranian president Ebrahim Raisi over the span of a year amid the violence in Gaza.

But Devapriya said Wickremesinghe – with his talks about currency integration with Indian rupee and affinity for Modi-backed Adani investments, thought to be the financing arm of the Indian government – is “as pro Indian as can be”, while there was a definite resistance from the Premada-led opposition on such controversial investment projects.

“So obviously for the Indians this [election] is going to be a game changer, but for the Chinese I’m not too sure,” he noted, adding that he did not think there would be any fundamental reset in Sri Lanka-China relations.
He also cited Wickremesinghe’s decision to hand over the China-built Hambantota Port in Southern Sri Lanka to state-controlled China Merchants Port Holdings on a 99-year lease, while he was prime minister in 2017, despite his previous criticisms.
Nilanthi Samaranayake, visiting expert at the US Institute of Peace and adjunct fellow at the East-West Center in Washington, said India would seek to preserve positive relations with Sri Lanka as another important neighbour, especially given the challenges posed by a post-Hasina Bangladesh.

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India has extensive experience working with the current president and the Rajapaksas, despite complicated relations with both, she noted, while China would seek to engage with whomever emerged victorious, based on its previous outreach to Sri Lanka because the “bilateral relationship is entrenched”.

Harindra B Dassanayake, an analyst at Muragala Centre for Progressive Politics and Policy from Sri Lanka, views NPP’s strong anti-India policy and its close ties to China, as a thorn in New Delhi’s side, especially given the leftist and revolutionary credentials of the NPP’s main alliance member, the Janatha VImukthi Peramuna (JVP).

“India will be compelled to be cautious with a potential NPP leadership, while China will see it as an opportunity to increase their presence in the region,” he said.

Samaranayake noted the NPP would be a “new and uncertain dynamic for India to manage in its external relations”.

Sri Lanka often prioritised domestic interests and preferences in the conduct of its international relations, but pulls back if it upsets New Delhi’s threat perception in the process, she added, citing Sri Lanka’s ban on foreign research vessels docking in its ports following Indian concerns over Chinese ships in Sri Lankan waters.

“This reflects the asymmetry of power for a smaller state, navigating the dominant country in its region. If the NPP wins, this will be a new development in Sri Lanka’s history that observers will need to track for potential shifts in the country’s external approach,” she said.

A man waves the Sri Lankan flag outside the president’s office in Colombo in July 2022. Photo: Bloomberg

Meanwhile, Dassanayake sees the leadership of Wickremesinghe or Premadasa to be a continuation of the current status quo from the perspective of China or India, while Beijing might profit from already-good relations with the Rajapaksa clan.

“However, the potentially weak political legitimacy of an incoming president would open a new avenue for increased pressure from geopolitical actors,” he pointed out.

But, Colombo has always viewed its foreign policy through an economic lens, Devapriya says, although there is a broad recognition that Sri Lanka needs to be both non-aligned and multi aligned.

“Multi aligned in terms of trying to gain economic leverage by being as friendly as possible with everyone. Non-aligned in terms of not being involved or privy to any of the big power plays and power conflicts and tensions that we are seeing right now.”

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