Strategic value of a Chinese-funded infrastructure project in Sri Lanka

Abstract

Stakeholders implement infrastructure projects for strategic, exchange and use values. For transnational projects, the identification of strategic value is more complex because of greater diversity of interests and stakeholders. In this paper, the authors investigate the development and contested nature of strategic values of a transnational Chinese-funded infrastructure project in Sri Lanka under its One Belt One Road (OBOR) initiative. The framework is interpretive; it explores how these values are shaped through stakeholder interactions. The authors apply this framework to the Colombo International Financial Centre (CIFC) using data collected through documents such as official reports, press statements and scholarly articles. Apart from economic benefits, many strategic values emerged from the project. Domestically, these cases include the desire of governments to seek international support and reduce its fiscal burden, the intents of individuals and groups to seek rents or further their business or other interests and its use by political parties to seek electoral support. Internationally, Chinese investment in the project will strengthen the Maritime Silk Route and help fulfil the OBOR vision. The project is a vent for surplus, a market for excess construction materials and a trade node. Finally, India perceives CIFC as a security threat and financial competitor.