China has built a port in Southern part of Sri Lanka. The same port has been leased out to China for 99 years. But when China wanted to dock a submarine at the port, Sri Lanka has rejected that request. Sri Lanka has already suffered a loss of $300 million in the port operation.
Mattala Rajapaksa International Airport (MRIA) also had been built by China four years back, which is 250 km away from the Commercial city of Colombo. China has funded 90 % of the project in a long term loan.
MRIA too is running at a loss and Sri Lanka is unable to pay back the loan to China.
Since both the projects are running at heavy loss Sri Lanka made a deal with China to sell 70 % shares of the Port to a state run Chinese firm. This action has rung an alarm in Indian cabinet which stimulated security concern.
As these two regional super powers are battling for territorial dominance, Sri Lanka also is compelled to strike a balance.
According to the reports, India is having progressive talks with Sri Lanka to revive the Chinese-built airport which is in a dilapidated condition and is located very close to the port the China has leased.
So the pitch is ready for the match.