When Sri Lanka handed over its southern port of Hambantota to China in December 2017, many saw the episode as a cautionary tale for other countries that are eagerly accepting Chinese finance to build major infrastructure projects.
Sri Lanka granted a 99-year lease on the port to China Merchant Port Holdings in the hope of cutting its debt to China, which is one of the highest among emerging economies. China, for its part, has gained an important beachhead that could help its attempts to expand military influence in the Indian Ocean.
