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At Sri Lanka"s southern tip, an abandoned British lighthouse stands sentinel near a half-moon-shaped cove bobbing with turquoise dinghies. Fishermen wearing sarongs drag wooden outriggers across a beach backed by centuries-old salt flats and palm trees.

Less than 2 miles down the coast, towering blue-and-white cranes dwarf the lighthouse, as does a contemporary glass and stucco office building — the Chinese headquarters of a sprawling new port complex.

A sleepy fishing hub since ancient times, the Sri Lankan town of Hambantota is located just a few nautical miles from where tens of thousands of container ships now pass annually, plying the Indian Ocean between Asia and the Middle East. It"s one of the busiest shipping lanes in the world — one that Beijing is eager to control.

So when the Sri Lankan government decided in 2002 to build a new port in Hambantota, China offered $1.1 billion in loans. It also supplied Chinese contractors. And when the port opened in late 2010 and immediately began losing money — so much that Sri Lanka couldn"t even make interest payments on those loans — China offered a solution: foreclosure.

The Hambantota port, pictured in 2018, opened in late 2010. After the Sri Lankan government defaulted on its loans, a Chinese state-owned operator took control of the port on a 99-year lease.

The Hambantota port, pictured in 2018, opened in late 2010. After the Sri Lankan government defaulted on its loans, a Chinese state-owned operator took control of the port on a 99-year lease.

Beijing has bankrolled infrastructure projects in dozens of countries as part of its Belt and Road Initiative, one of the biggest construction efforts in human history. The difference in Hambantota is that the Chinese state-owned operator physically took control of the port in late 2017 — on a 99-year lease — after the Sri Lankan government defaulted on its loans.

That has raised questions about sovereignty. An adviser to Sri Lanka"s newly elected president recently said the government wants China to "give it back."

"China uses so-called debt diplomacy to expand its influence. The terms of [its] loans are opaque at best, and the benefits invariably flow overwhelmingly to Beijing," Vice President Pence told the Hudson Institute, a think tank in Washington D.C., in October 2018. "Just ask Sri Lanka, which took on a massive debt to let Chinese state companies build a port of questionable commercial value. It may soon become a forward military base for China"s growing blue-water navy."

Hambantota port may have been of "questionable commercial value" when it belonged to Sri Lanka. But its Chinese operators say that business is picking up. And they"re set to control it for 97 more years.

China also has control over 15,000 acres of land around the Hambantota port — and it wants more. The district stretches about 75 miles along Sri Lanka"s southern coast and is home to some 600,000 residents. Until the port was built, its economy depended on fishing, farming and tourism.

"I don"t want to sell away my children"s future," says farmer Dharmasena Hettiarachchi. He refuses to part with his family"s land to make way for a Chinese industrial zone in Hambantota, Sri Lanka.

"I don"t want to sell away my children"s future," says farmer Dharmasena Hettiarachchi. He refuses to part with his family"s land to make way for a Chinese industrial zone in Hambantota, Sri Lanka.

Polling data is scarce, but experts believe most Sri Lankans across the country trust China and are happy about its many investments in their country — from the Hambantota port in the south to acoal-fired power plantin the northwest and a new concert hall and port city in the capital, Colombo.

"Many Sri Lankans see all this construction, and they"re proud of their district having these facilities. What people don"t seem to understand are issues of environmental impact, human rights and labor," says Bhavani Fonseka, a lawyer at the Centre for Policy Alternatives, a think tank in Colombo. "If you go to any project site, it"s the Chinese who have the jobs. Job creation hasn"t come for locals. Will these [Chinese] workers settle here? Is this becoming a colony? Very few people are asking these questions."

There"s also less unease in Sri Lanka about China than there is about other countries. Britain was Sri Lanka"s colonial ruler. The United States is known for its military interventions. India, with 1.3 billion people, is Sri Lanka"s closest neighbor and has long sought to dominate the much smaller island nation of 22 million just off its southern shore.

"When India or the West get involved in Sri Lankan affairs, there is suspicion as to what the motive is. Is it to divide the country? Is it [to] exploit, subjugate us?" says Jehan Perera, executive director of the National Peace Council, another think tank in Colombo. By contrast, Sri Lankans view Chinese investment as "essentially benign," he says. "China has never been a historical enemy of this country."

Ties between China and Sri Lanka have long focused on commerce, ever since the time of ancient seafaring traders. But relations really blossomed after 2005, when Mahinda Rajapaksa was elected president and welcomed Chinese lenders and builders to become part of a major infrastructure boom.

While many U.S. and Indian officials decry Hambantota as an example of Chinese "debt diplomacy," some Sri Lankan observers say their country"s politicians are more to blame. Corruption allegedly facilitated deals that ultimately delivered Hambantota into Chinese hands.

Ratnasabapathy believes it was wise for Sri Lanka to give up the port; otherwise, taxpayers would have been stuck with the bill. That"s what he told Sri Lankan officials in private conversations leading up to the 2017 transfer, he says.

Mahinda Rajapaksa, now Sri Lanka"s prime minister, welcomed Chinese lenders and builders to become part of a major infrastructure boom when he previously served as president.

Mahinda Rajapaksa, now Sri Lanka"s prime minister, welcomed Chinese lenders and builders to become part of a major infrastructure boom when he previously served as president.

But the country remains deep in debt — to the tune of about $66 billion. China is Sri Lanka"s biggest single lender, holding 12% of the country"s debt, according to data from Sri Lanka"s Finance Ministry. Japan holds 10%. Foreign banks together hold the most — about 42% — in the form of sovereign bonds.

Debt is only part of the story, though. In 2011, the government sold 6 acres of Colombo beachfront property to a Hong Kong-based holding company, for $125 million. The site, now home to a luxury hotel, once held strategic importance to Sri Lanka, but the government was willing to sell it, says Perera, from the National Peace Council.

The Sri Lankan capital"s skyline is now dominated by Chinese-built structures: a $1.4 billion business districtencompassing apartment towers, office skyscrapers and hotels, a new concert hall — and the 1,150-foot-high Lotus Tower, billed as the tallest tower in South Asia.

Commissioned in 2012 by Sri Lanka"s telecommunications agency, the Lotus Tower was built by Chinese state contractors as a hub for telecom companies. A revolving restaurant and observation deck were supposed to attract tourists.

But so far, it remains closed. During its inauguration in September, Sri Lanka"s outgoing president, Maithripala Sirisena, shocked a crowd of dignitaries — including Beijing"s envoy to Colombo — by accusing Chinese contractors of absconding with $11 million in state funds. Parliament is also investigating that.

The former head of Sri Lanka"s chamber of commerce, Chandra Jayaratne, believes the Lotus Tower and other Chinese-financed and -built projects represent a "lost opportunity" for Sri Lanka.

He watched his country"s building spree with hope — anticipating that China might help Sri Lanka build a profitable new port and a world-class telecom tower. But instead, Jayaratne now worries his countrymen will be paying for those and other projects for generations to come.

2 Min ReadAn employee of LG Electronics" home appliances store walks past its LCD televisions displayed for customers at a store in Seoul July 21, 2008. REUTERS/Jo Yong-Hak

SEOUL (Reuters) - South Korea"s LG Display Co Ltdand Taiwan"s Amtran Technologyagreed on Monday to set up a joint venture in China to produce flat screen modules and manufacture TV sets for brand makers.

LG Display, the world’s second-biggest maker of liquid crystal display (LCD) panels, has sought alliances with Asian TV makers to strengthen its client base and reduce costs.

The LG-Amtran joint venture will be set up in Amtran’s existing production base in Suzhou, China, with initial funding of $20 million. LG Display will own 51 percent of the new company and Amtran, maker of Vizio brand LCD TVs, will hold the remaining 49 percent.

The joint venture will produce 3 million LCD modules and 5 million LCD TV sets a year, with operations set to start early next year, LG said. It did not disclose the value of any additional investments to be made.

Leading LCD makers, including No. 1 Samsung Electronics Co Ltd, LG Display and third-ranked AU Optronics Corpface a slowing global economy that has hit demand for new flat-screen TVs and personal computers.

COLOMBO, Dec 23 (Reuters) - Priyantha Kumarasinghe starts his day in the small Sri Lankan town of Maharagama with a breakfast of two biscuits and a small glass of tea, followed by a round of cancer medicines.

The 32-year-old vegetable farmer was diagnosed with lung cancer in 2021 and started receiving treatment earlier this year just as Sri Lanka"s economy went into free-fall.

Amid crippling fuel scarcity and weeks of unrest, Kumarasinghe said he was unable to travel the 155 km (96 miles) between his home and Sri Lanka"s main cancer hospital on the outskirts of the country"s largest city, Colombo, for treatment.

Kumarasinghe is among hundreds of cancer patients who have had their treatment upended by Sri Lanka"s worst economic crisis since independence from Britain in 1948.

Hospitals countrywide have struggled to contend with severe drug shortages, which have worsened over the last eight months, a representative of Sri Lanka"s largest doctors union told Reuters.

Battered by the loss of tourism and remittance earnings because of the pandemic, alongside an ill-timed tax cut, Sri Lanka slid into crisis in early 2022 after its foreign exchange reserves dried up, leaving it short of dollars to pay for fuel, food, cooking gas and medicines.

Besides inflation, his income has been badly hit by a chemical fertiliser ban implemented last year, which has since been reversed, but led to the price of fertilisers jumping to about 30,000 Sri Lankan rupee ($82.64) a bag from about 1,600 rupees previously, Kumarasinghe said.

"Due to the current crisis in Sri Lanka, we are facing severe problems in transport and food," said Silaksana, 27, who is pregnant with her second child.

But the change in plan also highlights Samsung"s difficulty in developing next-generation displays, and the tech giant"s outlook after the pandemic-driven demand fizzles remains uncertain. Compatriot and rival LG Display has also postponed plans to end production of LCD panels.

COLOMBO, Sri Lanka — It all began 20 years ago, when China loaned Sri Lanka more than $1 billion to build a fancy new port — what would become its second-largest — on its southern coast.

The Hambantota port, with its strategic location near busy Indian Ocean shipping routes, was touted as good for Sri Lankan commerce. But it wasn"t profitable, and the government defaulted on those Chinese loans.

Beijing"s critics have long offered up Hambantota as the classic example of what they call a Chinese debt trap. Now, with Sri Lanka bankrupt and politically unstable, they"re flagging it as a worrying example of how China might use that infrastructure for military purposes.

Their fears grew this week, when a Chinese survey ship docked at Hambantota. Sri Lanka and China call it a scientific research vessel, which will stay through Aug. 22 to resupply. But foreign security experts call it a Chinese naval ship that"s been used in the past to track satellites and missiles.

Chinese companies, most of them state-owned, have built ports, power stations, an airport — even a giant lotus-shaped tourist tower — across Sri Lanka.

At first, these projects were hailed as symbols of Sri Lanka"s development, says Shreen Sarour, a human rights activist. Many of the projects now look like "white elephants," she says — useless to the now-bankrupt Sri Lankan government, but possibly useful to China. They could be used to interfere with or control global trade, or possibly even as launchpads for military aggression, Sarour believes.

Sri Lanka has been one of the countries hardest hit by inflation and rising energy prices this year. In May, the government defaulted on foreign debt payments. By July, inflation had shot up to 60%. There are rolling blackouts, food shortages and fuel rationing.

The economic crisis sparked a political one: Protesters filled the streets, calling for the ouster of President Gotabaya Rajapaksa. Last month, he fled the country and resigned. A new president is now in his place.

Protestors participate in an anti-government demonstration outside the president"s office in Colombo, Sri Lanka, on July 9. Then-President Gotabaya Rajapaksa fled his official residence in Colombo before protesters gathered.

Protestors participate in an anti-government demonstration outside the president"s office in Colombo, Sri Lanka, on July 9. Then-President Gotabaya Rajapaksa fled his official residence in Colombo before protesters gathered.

Many Sri Lankans accuse Rajapaksa and his brother, another former president, of running the economy into the ground. Protesters are calling for scrutiny of everything they did. One of the biggest things they did was to sign opaque investment deals with China, including oversight of the Chinese construction at Hambantota.

"This is economic colonialism," says W. Jude Namal Fernando, a Sri Lankan fisherman turned activist who successfully lobbied a Chinese construction company to compensate fishermen whose land was eroded because of Chinese dredging north of Colombo. "China exploits our country, but it"s our leaders who let them do it."

China and Sri Lanka have both sought to allay concerns of those like Fernando and Sarour, as well as foreign governments like India"s, who worry this Chinese ship"s arrival could signal the start of the militarization of Chinese infrastructure in Sri Lanka.

When the ship docked Tuesday, the Chinese Embassy threw a welcome ceremony. Workers stood at attention, waving Chinese and Sri Lankan flags, and the Chinese ambassador extolled the two countries "outstanding friendship."

Chinese Ambassador to Sri Lanka Qi Zhenhong (front row, third from left) and captain of the Yuan Wang-5 ship, Zhang Hongwang (front row, second from left), attend a ceremony welcoming the Chinese ship to Sri Lanka"s Hambantota International Port in Sri Lanka, Aug. 16.

Chinese Ambassador to Sri Lanka Qi Zhenhong (front row, third from left) and captain of the Yuan Wang-5 ship, Zhang Hongwang (front row, second from left), attend a ceremony welcoming the Chinese ship to Sri Lanka"s Hambantota International Port in Sri Lanka, Aug. 16.

On Tuesday, a Sri Lankan government spokesperson, Bandula Gunawardana, told reporters that lots of international ships dock in Sri Lanka and insisted this one is no different — but emphasized that the government is working to ensure there"s no "friction" with friendly nations.

"People are very worried whether we will be the battlefield between and China"s and India"s tensions — whether Sri Lanka will be the point where the war will start," she says.

So Sri Lanka is asking the International Monetary Fund for a bailout. The IMF has said the country"s political instability could prolong its delivery.

"Meanwhile, we need money to survive. We need about $800 million per month. Somebody will have to finance it," says W.A. Wijewardena, former deputy governor of Sri Lanka"s central bank. "Earlier, that somebody was the European Union, the USA, Japan or India — which has its own problems. So now that somebody? China."

Perera says it"s easy to blame China or the Rajapaksa brothers for all of Sri Lanka"s current problems. It may be harder, he says, for the country"s new leaders to avoid the same mistakes.

A Sri Lankan traditional dancer carries a decorative umbrella as the crew of Chinese ship Yuan Wang 5 wave Chinese flags after arriving at Hambantota International Port in Hambantota, Sri Lanka, on Tuesday.

A Sri Lankan traditional dancer carries a decorative umbrella as the crew of Chinese ship Yuan Wang 5 wave Chinese flags after arriving at Hambantota International Port in Hambantota, Sri Lanka, on Tuesday.

"Rare-earth elements (REE) are necessary components of more than 200 products across a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions. Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems. Although the amount of REE used in a product may not be a significant part of that product by weight, value, or volume, the REE can be necessary for the device to function. For example, magnets made of REE often represent only a small fraction of the total weight, but without them, the spindle motors and voice coils of desktops and laptops would not be possible.

In 1993, 38 percent of world production of REEs was in China, 33 percent was in the United States, 12 percent was in Australia, and five percent each was in Malaysia and India. Several other countries, including Brazil, Canada, South Africa, Sri Lanka, and Thailand, made up the remainder. However, in 2008, China accounted for more than 90 percent of world production of REEs, and by 2011, China accounted for 97 percent of world production. Beginning in 1990 and beyond, supplies of REEs became an issue as the Government of China began to change the amount of the REEs that it allows to be produced and exported. The Chinese Government also began to limit the number of Chinese and Sino-foreign joint-venture companies that could export REEs from China."

Emerging Media is currently the market leader in digital signage solutions in Sri Lanka and one of the largest digital advertising networks, including indoor and LED screen advertising, with more than 200 prime locations in Colombo, Sri Lanka.

Emerging Media won the Silver Award in the “Local Brand of SME of the Year” category in November 2029. The company’s main products are outdoor LED displays, LCDs, and so on.

Samara Advertising is a full-service advertising agency company, mainly focusing on indoor, outdoor, and offset printing marketing. The company’s coverage area is mainly concentrated in the southern province of Sri Lanka. Still, it is also happy to be any type of enterprise throughout the island. Provide services.

Samara Advertising has developed into a leading full-service advertising company specializing in LED digital displays and offset printing, brand names, T-shirts, etc.

Storm Media’s passion is to combine the latest marketing techniques with strategic thinking and creative execution to provide the best-led screen advertising in Sri Lanka.

Athula Paranayapa Services is a modern and vibrant advertising company in Sri Lanka. It has more than 55 years of experience in this field. In 2011, it became the first company to conduct outdoor advertising LED video walls and LED promotional vehicles.

Reggee Advertising Services specializes in a wide range of advertising and related services, including hoardings, store and dealer brands, exhibition booths, LED mobile promotional vehicles, banner displays, screen printing, and digital printing in Sri Lanka.

Reggee Advertising Services is one of Sri Lanka’s leading experts in outdoor advertising and corporate branding. At the 2012 Sri Lanka Entrepreneur Awards Ceremony organized by the Sri Lanka Chamber of Commerce and Industry, Reggee Advertising won the “Big Category Silver Award” in Western Province. The company also won the “National Excellence Award” in the national category at the same awards ceremony.

Ashans Advertising is an outdoor advertising company in Sri Lanka. The company’s main work includes indoor advertising design, retail advertising design, exhibitions, conferences and event projects, etc. It has a 20,000 square foot design studio and workshop and more than 100 large teams.

Sign and Shine is one of the leading digital media advertising companies in Sri Lanka. Its main products include: LED signboards, Video walls, LED furniture, LED floors, LED curtains, LED advertising trucks, etc.

Sign Tech provides personalized and professional services, has a professional team and rich experience, and is well received by Sri Lanka in the advertising industry.

Jeewa Plastic (Pvt) Ltd, as a supplier of high-quality materials for the indoor and outdoor advertising industry, has always occupied a leading market position in Sri Lanka. The company has a broad product portfolio and regularly evaluates the latest trends and developments in the industry.