LEASE AGREEMENT ISSUE OF THE HAMBANTOTA AND GWADAR PORT: A COMPARATIVE ANALYSIS

Abstract

This paper broadly examines the lease issue of the Chinese sponsored ports in Sri-Lanka and Pakistan. The introduction part elaborates The Belt and Road Initiative of China which aims to promote regional connectivity and the South Asian developing countries are the main hub of these development projects. The ports of South Asian countries are acting as pearls in the maritime routes of Arabian Sea. The study briefly explains the Mahan’s theory of sea dominancy and how China took inspiration from that theory to develop the sea routes to expend the maritime trade. The strategic importance of the Hambantota and Gwadar port has been discussed in the perspective of lessening the traveling time and cost of Chinese trade and also how the development of these ports can benefit the struggling economy of Sri-Lanka and Pakistan. This paper also highlights the fact that how the political orientation and instability of a state can led to tough decision by the government in case of the Hambantota port. Comprehensive information about the lease of the ports and the myths and realities of debt trap is underlined in the study. The future prospect of the Gwadar port covers the concerns about political Think Tanks affiliating it to the Hambantota port issue. The path forward explores the ideas that what should be the precautionary measures during lease issues and the lesson for other partner countries who intend to avail the loan for the projects.