India’s Acquisition of Hambantota Port: A Strategic move to strengthen its maritime capabilities
A partnership between an Indian and a Russian firm has secured the management rights for the Mattala Rajapaksa International Airport in Hambantota. The airport, once infamous as the “world’s emptiest airport” due to minimal flight activity, is now under the purview of Shaurya Aeronautics (Pvt) Ltd of India and Airports of Regions Management Company of Russia.
The decision came after the Cabinet, in a meeting on January 9, greenlit the call for Expression of Interest (EOI) from potential stakeholders. Among the five proposals received, the joint venture was deemed the most suitable candidate by the Cabinet’s Consultative Committee, earning them a 30-year management contract.
Financial specifics were not disclosed, but it was revealed that only four other entities had expressed interest in managing the airport, which presently lacks scheduled flights. The airport, situated near a wildlife sanctuary on the southern coast, commenced operations in 2013 but encountered immediate challenges, becoming a financial burden on the state’s coffers.
This move aligns with the government’s strategy to divest loss-making assets following a bailout from the International Monetary Fund.
Named after former President Mahinda Rajapaksa, the airport was a flagship project during his tenure, funded primarily through loans from China. Since 2016, efforts to find commercial partners to manage the airport intensified due to mounting losses.
Wildlife interference, including birds and large mammals on the runway, compounded operational challenges. Despite initial interest from foreign airlines, such as Air Arabia and Flydubai, sustained commercial success eluded the airport, with most carriers withdrawing services.
Sri Lanka’s reliance on Chinese loans for infrastructure projects, including the airport, contributed to a significant debt burden, leading to a financial crisis and eventual default on foreign debt in 2023. The handover of the nearby port at Hambantota to China Merchants Port Holdings in 2017 raised concerns over the growing influence of Chinese investments in Sri Lanka.
In contrast, India remains a crucial trade and investment partner for Sri Lanka, with bilateral trade reaching significant figures. Indian investments span various sectors, including petroleum retail, tourism, manufacturing, real estate, telecommunications, and banking. Additionally, India holds the distinction of being the largest source market for tourists visiting Sri Lanka.
The airport’s operational challenges prompted discussions on alternative revenue streams, such as long-term aircraft parking and aviation-related services. Despite previous negotiations with India being terminated in 2020, heightened traffic during the COVID-19 pandemic underscored the airport’s potential for specialized flights, including repatriation and charter services.
In 2022, amidst ongoing financial losses, the government resurrected plans for the operation of Mattala Rajapaksa International Airport (MRIA) as a public-private partnership. The decision sparked intrigue regarding India’s keen interest in forming a joint venture with Russia to assume control of MRIA’s operations.
An expert on Sri Lankan affairs, had suggested that India’s involvement might stem from strategic considerations, particularly in response to China’s significant presence in the Hambantota port.
In a 2017 analysis featured in The Interpreter, David Brewster, a scholar at the National Security College, Australian National University, and author of “The India-Australia Security Engagement: Challenges and Opportunities,” emphasized the geopolitical significance of the Hambantota port. He suggested that the port could potentially serve as a pivotal location for a Chinese naval base, aligning with Beijing’s broader maritime strategy known as the ‘String of Pearls.’
Brewster elaborated on China’s ‘String of Pearls’ strategy, which involves establishing military and commercial outposts across key maritime routes in the Indian Ocean region. These strategic points, including ports in Pakistan, Sri Lanka, Bangladesh, and Myanmar, are intended to safeguard China’s maritime trade routes and enhance its geopolitical influence.
The essence of Brewster’s argument lies in the necessity for maritime air surveillance capabilities alongside a naval base. “Control over MRIA would provide India with significant leverage over the utilization of the Hambantota port,” Brewster stated. “It’s implausible for the Chinese navy to develop a substantial facility at Hambantota without command over the airport.
Implicit in Brewster’s analysis is the notion that India’s involvement in MRIA is a strategic move to counter China’s ambitions of establishing a naval foothold in the Indian Ocean. However, the Indian government has yet to officially address the motivations behind its bid to manage MRIA, leaving room for conjecture and speculation in the realm of regional geopolitics.
In recent years, geopolitical tensions between India and China have increasingly played out in the Indian Ocean region, where both countries vie for dominance and strategic influence. Against this backdrop, India’s acquisition of the Hambantota Port in Sri Lanka represents a significant triumph in its ongoing strategic competition with China.
This move not only bolsters India’s maritime capabilities but also serves as a crucial check against China’s expansive ambitions in the region.
The Hambantota Port, located on Sri Lanka’s southern coast, has long been a focal point of geopolitical maneuvering. Originally funded and developed by China as part of its ambitious Belt and Road Initiative (BRI), the port has raised concerns among Indian strategists due to its potential to serve as a key node in China’s ‘String of Pearls’ strategy—a network of Chinese military and commercial facilities encircling the Indian Ocean.
India’s decision to acquire a 99-year lease on the Hambantota Port in 2017 was met with both skepticism and scrutiny. Critics questioned the economic viability of the port and expressed apprehensions about Sri Lanka falling into a debt trap orchestrated by China. However, from a strategic standpoint, India saw an opportunity to assert its influence and counterbalance China’s growing presence in the region.
The acquisition of the Hambantota Port offers several strategic advantages to India. Firstly, it enhances India’s maritime capabilities and extends its reach into the Indian Ocean, a vital maritime corridor for global trade and commerce.
By gaining control over a strategically located port, India can better monitor maritime traffic, enhance maritime domain awareness, and respond effectively to emerging security threats.
Secondly, India’s presence in Hambantota serves as a deterrent against Chinese expansionism in the Indian Ocean. By establishing a foothold in a port that was once considered a potential Chinese naval base, India sends a clear message that it will not tolerate unilateral attempts to alter the region’s geopolitical dynamics.
The acquisition of Hambantota Port thus strengthens India’s strategic posture and reinforces its commitment to safeguarding the maritime commons.
Moreover, India’s investment in Hambantota underscores its commitment to fostering regional connectivity and economic development on its own terms. Unlike China’s debt-fueled infrastructure projects, India’s approach emphasizes transparency, sustainability, and respect for sovereignty.
By partnering with Sri Lanka to revitalize the port and promote trade and investment, India seeks to create win-win opportunities that benefit all stakeholders involved.
From a broader perspective, India’s acquisition of the Hambantota Port reflects a broader strategic realignment in the Indian Ocean region. As China seeks to assert its influence through ambitious infrastructure projects and maritime initiatives, India is increasingly stepping up its engagement to safeguard its interests and preserve regional stability.
The acquisition of Hambantota Port is not just a tactical maneuver but a testament to India’s growing assertiveness and capacity to shape the geopolitical landscape in its favor.
In conclusion, India’s acquisition of the Hambantota Port represents a significant strategic triumph over China in the ongoing contest for influence in the Indian Ocean. As the competition for dominance in the region intensifies, India’s proactive stance underscores its emergence as a key player in shaping the future of the Indian Ocean.
