India's External Affairs Minister S. Jaishankar is on a visit to Sri Lanka at&nbsp;a time when growing Chinese influence is testing this relationship.

Jaishankar is on a two-day visit and he will be holding bilateral talks with his counterpart, as well as the Rajapaksa brothers — President Gotabaya Rajapaksa and&nbsp;the Prime Minister Mahinda Rajapaksa.

The agenda

The first agenda of this visit is the proposal to build a terminal at the Colombo port, also known as&nbsp;the East Container Terminal. India, alongside Japan, has an agreement to develop this terminal for Sri Lanka.

In 2019,&nbsp;the three countries had signed a memorandum of cooperation. The terms were that the Sri Lanka ports authority will retain 100 per cent ownership, the terminal would be run by a joint company — owned collectively by India, Japan and Sri Lanka, and&nbsp;Sri Lanka will be the majority owner with 51 per cent, India and Japan will have a 49 per cent stake.

This agreement&nbsp;is starkly different from the one Sri Lanka signed with China for the Hambantota port —a&nbsp;project that was largely funded by China.

Also read|&nbsp;<a href="https://www.wionews.com/india-news/foreign-minister-jaishankar-to-visit-sri-lanka-in-the-first-visit-of-2021-354393" hreflang="en">Foreign Minister Jaishankar to visit Sri Lanka in the first visit of 2021</a>

The arrangement pushed Colombo into a debt trap. Ultimately, it had to lease the port to China for 99 years in 2017.

Now with the Indian minister in Sri Lanka, we might get an indication about Sri Lanka's thinking; which way its leaning for the Colombo port project because&nbsp;it has faced opposition from workers and some politicians.

However, the early signs are promising. Before Jaishankar's visit,&nbsp;Sri Lanka's port and shipping minister issued a statement saying&nbsp;the east container terminal will be developed and&nbsp;not sold to anyone. He claimed the terminal will be an "Economic and naval hub".

The second item on agenda could be&nbsp;financial assistance. Last year, Colombo had made a request to New Delhi. The Sri Lankan government wanted a special one billion currency swap facility with India as well as a debt moratorium.

These are testing times for the Sri Lankan economy. It faces what many are calling its "worst economic slump".

Last month, Colombo announced that its GDP for the second quarter plunged by 16.3 per cent. The Sri Lankan central bank projects a 3.9 per cent contraction this year mainly due to the coronavirus.

The pandemic has hit Sri Lanka's tourism sector badly too. International arrivals fell by close to 71 per cent in March last year. Before the pandemic, Sri Lanka reportedly lost 1.5 billion from tourism because of the easter bombings. So, the virus came as a double whammy for Colombo.

Now, Sri Lanka has ordered tight controls over foreign exchange. A ban has been imposed on all non-essential imports, including&nbsp;all types of vehicles.

Colombo's debt obligation amounts to around four billion a year, but Sri Lanka says it will honour all commitments. However, international ratings agencies have slashed the credit worthiness of Sri Lanka.

At a time like this, any assistance from India will be welcome in Colombo. More importantly,&nbsp;Jaishankar's visit could decide the future trajectory of this relationship.

India's External Affairs Minister S. Jaishankar is on a visit to Sri Lanka at a time when growing Chinese influence is testing this relationship. Jaishankar is on a two-day visit and he will be holding bilateral talks with his counterpart, as well as the Rajapaksa brothers — President Gotabaya Rajapaksa and the Prime Minister Mahinda Rajapaksa.

India's External Affairs Minister S. Jaishankar is on a visit to Sri Lanka at a time when growing Chinese influence is testing this relationship. Jaishankar is on a two-day visit and he will be holding bilateral talks with his counterpart, as well as the Rajapaksa brothers — President Gotabaya Rajapaksa and the Prime Minister Mahinda Rajapaksa. The agenda The first agenda of this visit is the proposal to build a terminal at the Colombo port, also known as the East Container Terminal. India, alongside Japan, has an agreement to develop this terminal for Sri Lanka. In 2019, the three countries had signed a memorandum of cooperation. The terms were that the Sri Lanka ports authority will retain 100 per cent ownership, the terminal would be run by a joint company — owned collectively by India, Japan and Sri Lanka, and Sri Lanka will be the majority owner with 51 per cent, India and Japan will have a 49 per cent stake. This agreement is starkly different from the one Sri Lanka signed with China for the Hambantota port —a project that was largely funded by China. Also read| Foreign Minister Jaishankar to visit Sri Lanka in the first visit of 2021 The arrangement pushed Colombo into a debt trap. Ultimately, it had to lease the port to China for 99 years in 2017. Now with the Indian minister in Sri Lanka, we might get an indication about Sri Lanka's thinking; which way its leaning for the Colombo port project because it has faced opposition from workers and some politicians. However, the early signs are promising. Before Jaishankar's visit, Sri Lanka's port and shipping minister issued a statement saying the east container terminal will be developed and not sold to anyone. He claimed the terminal will be an "Economic and naval hub". The second item on agenda could be financial assistance. Last year, Colombo had made a request to New Delhi. The Sri Lankan government wanted a special one billion currency swap facility with India as well as a debt moratorium. These are testing times for the Sri Lankan economy. It faces what many are calling its "worst economic slump". Last month, Colombo announced that its GDP for the second quarter plunged by 16.3 per cent. The Sri Lankan central bank projects a 3.9 per cent contraction this year mainly due to the coronavirus. The pandemic has hit Sri Lanka's tourism sector badly too. International arrivals fell by close to 71 per cent in March last year. Before the pandemic, Sri Lanka reportedly lost 1.5 billion from tourism because of the easter bombings. So, the virus came as a double whammy for Colombo. Now, Sri Lanka has ordered tight controls over foreign exchange. A ban has been imposed on all non-essential imports, including all types of vehicles. Colombo's debt obligation amounts to around four billion a year, but Sri Lanka says it will honour all commitments. However, international ratings agencies have slashed the credit worthiness of Sri Lanka. At a time like this, any assistance from India will be welcome in Colombo. More importantly, Jaishankar's visit could decide the future trajectory of this relationship.

Jaishankar visits Sri Lanka as island faces economic crisis

Sri Lanka's President Gotabaya Rajapaksa named two more relatives to a new government unveiled Wednesday, further consolidating his family's grip on power.

His brother Mahinda will lead the government, formed after their nationalist party's landslide win in a parliamentary election last week.

Gotabaya and Mahinda will control the key defence and finance portfolios, respectively, in the new 26-member cabinet.

Also see:&nbsp;<a href="https://www.wionews.com/photos/meet-the-rajapaksa-dynasty-patriarch-terminator-mr-ten-percent-bodyguard-and-scion-318857">Meet the Rajapaksa dynasty: Patriarch, 'Terminator', 'Mr Ten Percent', 'bodyguard' and scion</a>

Their elder brother Chamal kept his place in the cabinet and was joined by Mahinda's eldest son, Namal, who was named sports minister.

The growing dynastic imprint was strengthened by one of their nephews, Shasheendra Rajapaksa, who joined the government as a state agriculture minister though he will not be in the cabinet.

Gotabaya Rajapaksa, 71, became president in November last year and named Mahinda, a 74-year-old former president, as prime minister.

Pursuing a nationalist agenda, their party has won a two-thirds majority in parliament, which allows them to change the constitution and tighten their hold on power.

The brothers want to scrap a 2015 constitutional amendment which transferred some executive powers from the president to the prime minister, along with independent institutions to run public services and the judiciary.

In the new cabinet, Mahinda was given three portfolios -- finance, culture and housing -- while their eldest brother Chamal, 77, was given irrigation, a powerful position in largely rural Sri Lanka.

Chamal was also made the state minister for defence, a non-cabinet position responsible for internal security and disaster management.

The swearing-in of ministers was carried out at the Temple of the Tooth, the holiest Buddhist shrine, in the presence of saffron-robed monks and other guests in Kandy, 115 kilometres (71 miles) east of Colombo.

The venue was carefully chosen to reinforce the Rajapaksa family's appeal to their majority Sinhala-Buddhist constituency.

The president took his oath after his November landslide in front of a pagoda built by a legendary Sinhala king known to have vanquished a rival from the minority Tamil community.

Mahinda was sworn in as Prime Minister on Sunday at the Kelaniya temple which Buddhists in Sri Lanka believe to have been visited by the Buddha himself.

Sri Lanka's President Gotabaya Rajapaksa named two more relatives to a new government unveiled Wednesday, further consolidating his family's grip on power. His brother Mahinda will lead the government, formed after their nationalist party's landslide win in a parliamentary election last week.

Sri Lanka's President Gotabaya Rajapaksa named two more relatives to a new government unveiled Wednesday, further consolidating his family's grip on power. His brother Mahinda will lead the government, formed after their nationalist party's landslide win in a parliamentary election last week. Gotabaya and Mahinda will control the key defence and finance portfolios, respectively, in the new 26-member cabinet. Also see: Meet the Rajapaksa dynasty: Patriarch, 'Terminator', 'Mr Ten Percent', 'bodyguard' and scion Their elder brother Chamal kept his place in the cabinet and was joined by Mahinda's eldest son, Namal, who was named sports minister. The growing dynastic imprint was strengthened by one of their nephews, Shasheendra Rajapaksa, who joined the government as a state agriculture minister though he will not be in the cabinet. Gotabaya Rajapaksa, 71, became president in November last year and named Mahinda, a 74-year-old former president, as prime minister. Pursuing a nationalist agenda, their party has won a two-thirds majority in parliament, which allows them to change the constitution and tighten their hold on power. The brothers want to scrap a 2015 constitutional amendment which transferred some executive powers from the president to the prime minister, along with independent institutions to run public services and the judiciary. In the new cabinet, Mahinda was given three portfolios -- finance, culture and housing -- while their eldest brother Chamal, 77, was given irrigation, a powerful position in largely rural Sri Lanka. Chamal was also made the state minister for defence, a non-cabinet position responsible for internal security and disaster management. The swearing-in of ministers was carried out at the Temple of the Tooth, the holiest Buddhist shrine, in the presence of saffron-robed monks and other guests in Kandy, 115 kilometres (71 miles) east of Colombo. The venue was carefully chosen to reinforce the Rajapaksa family's appeal to their majority Sinhala-Buddhist constituency. The president took his oath after his November landslide in front of a pagoda built by a legendary Sinhala king known to have vanquished a rival from the minority Tamil community. Mahinda was sworn in as Prime Minister on Sunday at the Kelaniya temple which Buddhists in Sri Lanka believe to have been visited by the Buddha himself.

Sri Lanka president strengthens Rajapaksa dynasty in new government

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Jaishankar visits Sri Lanka as island faces economic crisis

Sri Lanka president strengthens Rajapaksa dynasty in new government