As Dinesh Gunawardena was getting ready for his visit to China, Indian media reported the presence of four Chinese research ships in the Indian Ocean. Concurrently, the Sri Lankan government was reconsidering its ban on Chinese research vessels. Despite Chinese protests over Sri Lanka’s grant of a German research ship, the government decided to review the ban, coinciding with Dinesh’s visit to China. Before his departure, the Ministry of External Affairs clarified that no ban on foreign research vessels, including Chinese ones, existed for replenishment purposes. This reversal marked a departure from the previous policy.
It appears that China sought permission for its research ships ahead of Dinesh’s visit, citing the acceptance of the German vessel as a rationale. Dinesh’s trip seems aimed at diffusing tensions stemming from the shipping ban crisis. Reports suggest he will sign an oceanography agreement, potentially linking it to Sri Lanka’s debt restructuring. President Ranil dispatched Dinesh to negotiate the restructuring which was agreed before. This proposal remains undisclosed to other creditors. China’s consent is crucial, and it seems to be leveraging its research ships as leverage, risking anger from Sri Lanka’s other creditors like India, Japan, and the Paris Club.
Ranil aware of the IMF’s disagreement with China’s restructuring agreement. Ranil, knowing China’s stance, utilized his US treasury secretary’s connections to pressure IMF executive director to accept Sri Lanka’s restructuring terms. While unable to change China’s position directly, he influenced the IMF, which China is exploiting to wield debt restructuring as a geopolitical tool against India and the US.