Chinaâ€™s expansion within Sri Lanka has further increased with the Chinese securing the construction of the proposed Northern Expressway that was earlier earmarked to be given to the Indians.
India had earlier expressed interest in playing a key role in the construction of the Northern Expressway. The construction of the Northern railway line is being carried out by the Indians. The Cabinet has given permission to China Merchants Holdings and its subsidiary China Merchants Huajian Highway Investment Company Limited to fully fund the first phase of the construction of the expressway to the North.
During bilateral discussions held between Sri Lanka and China in Beijing in May, the two countries signed an agreement for China to fund the construction of a new Northern Expressway from Colombo to Jaffna.