The Pearl of the Indian Ocean: A Case Study of the Impact of China’s Belt and Road Initiative on Sri Lanka

Abstract

This study provides a nuanced analysis of the implementation of the Belt and Road Initiative (BRI) through a focused case study of Sri Lanka, a country whose engagement with the project was painted as nothing more than a cautionary tale by Western media. By challenging these prevalent narratives and exploring the country-specific context related to BRI, this thesis reveals the true, complex story of BRI in Sri Lanka, examining its economic, political, and human rights impact on citizens. Motivated by a notable gap in the literature on BRI in Sri Lanka and a commitment to elevating Sri Lankan perspectives on this issue, the thesis employs a qualitative model composed of in-depth interviews with a range of stakeholders, including politicians, diplomats, business leaders, and community advocates. These interviews provide insight into what elite opinion makers in Sri Lanka believe are BRI’s most significant consequences.

Contrary to initial assumptions, the findings of this study suggest a mixed impact that was not uniformly negative. Economically, collective responses by elite opinion makers demonstrate BRI’s impact was neutral. While some projects yielded positive financial benefits for citizens and spurred competition in the private sector, many projects proved to be ineffective ‘white elephants’ or exaggerated in cost in a way that unnecessarily magnified Sri Lanka’s debt to China.

Politically, negative factors associated with BRI stirred domestic unrest, primarily directed at the Sri Lankan government rather than solely at China. Some of these factors included its facilitation of foreign interference in domestic affairs, increased corruption, and loss of transparency. Despite these negative aspects, BRI’s political impact is seen as positive as it helped catalyze movements for accountability and transparency that were long overdue.

On the human rights front, BRI projects have exhibited adverse effects, in environmental degradation which disproportionately affected poorer communities, as well as in potential media censorship and labor rights. The initiative did slightly improve economic development for some communities, but its impact on human rights is largely seen as negative.

Beyond its findings specific to Sri Lanka, the work hopes to underscore the importance of community consultation and local perspectives in international development projects, emphasizing the need for greater accountability, transparency, and consideration.