Data Lab | Shin Yan 6 in question: Is China arm-twisting Sri Lanka to comply with its demands?

The state-of-the-art Chinese research vessel, Shin Yan 6, made its way to the Port of Colombo on October 25. Sri Lanka has granted the vessel a 48-hour research window along its west coast. While there are suspicions that this vessel has ties to espionage, India has been closely monitoring its activities for a while.

Sri Lanka's decision to permit marine research activities under surveillance is a direct response to India's previous security concerns related to China's expanding presence in the Indian Ocean and its strategic influence in Sri Lanka. 

The precarious situation in which Sri Lanka finds itself also prompts questions about the country's obligations to China and its inability to reject Chinese demands.

China's history of surveillance has not been without ambiguities. There consistently seems to be a dual purpose associated with Chinese instruments and research initiatives.

"The Chinese civilian and military boundaries are very thin, and often blurred. A handy example is the balloon that veered of limits, entering into US airspace and then it being shot down subsequently," Dr Anand P Krishnan, Fellow, Centre for Himalayan Studies, Shiv Nadar Institution of Eminence, Delhi NCR, and Visiting Associate Fellow, Institute of Chinese Studies told WION. 

"While the Chinese claimed it was a weather mapping balloon and it being used for experiments, the fact that it veered of course considerably gave enough ground to suspect it being used for surveillance," he says.

Regarding Sri Lanka, China seems to be pursuing a more comprehensive diplomatic agenda.

In terms of the economy, China holds the position of being Sri Lanka's largest lender. Just earlier this month, after more than a year since Sri Lanka found itself in an economic crisis, an agreement was reached with the Export-Import (EXIM) Bank of China to cover approximately $4.2 billion of Sri Lanka's outstanding debt, as confirmed by a statement from the country's finance ministry on October 11.

China's lending practices to less affluent nations have often come under scrutiny, with accusations that they leave the borrower countries struggling to repay debts and consequently more susceptible to pressure from Beijing.

During an interview with the BBC, Richard Moore, who leads Britain's foreign intelligence agency MI6, mentioned that China employs what he referred to as "dept traps" to acquire influence over other nations.

The assertion is that China extends loans to other countries, and if these nations fail to meet their debt obligations, they are compelled to relinquish control of significant assets. This accusation has long been refuted by Beijing.

One frequently mentioned example by critics of China is Sri Lanka, which initiated a substantial port project in Hambantota with Chinese funding several years ago. However, the billion-dollar project, funded by Chinese loans and executed by Chinese contractors, became embroiled in controversy and struggled to demonstrate its viability, resulting in Sri Lanka accumulating substantial debts.

Ultimately, in 2017, Sri Lanka consented to grant a 70 per cent controlling stake in the port to China Merchants, a state-owned entity, on a 99-year lease in exchange for additional Chinese investment.

In the case of Shi Yan 6, we can see how these crafty tactics are playing out.

"This notes the expanding role of the Chinese navy beyond its immediate neighbourhood. At the same time, such happenings also show the intricate ways China and Sri Lankan bilateral relations are tied. The economic crisis in Lanka and its dependency on Beijing for its infrastructure projects ties it further to China, helping the latter have leverage," Dr Krishnan notes.

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China's Exim Bank is offering support in the process of restructuring Sri Lanka's debt to aid the country in overcoming its economic crisis. Additionally, Sri Lankan Prime Minister Ranil Wickremesinghe travelled to Beijing to participate in the Belt and Road Initiative (BRI) Forum, which commemorated the initiative's ten-year anniversary.

"While Colombo is discomfited in treading a thin line between Delhi and Beijing, expect such situations and happenings to continue if not entirely intensify in the days to come," Dr Krishnan adds. 

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