Sri Lanka allows Chinese research ship to dock as neighboring India’s security concerns grow

Chinese research ship Shi Yan 6 proceeds to deck at a port in Colombo on October 25, 2023. (AFP)
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Updated 25 October 2023
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Sri Lanka allows Chinese research ship to dock as neighboring India’s security concerns grow

  • India is concerned about rival China’s growing presence in the region
  • Vessel expected to conduct research with Sri Lankan state institutions

COLOMBO, Sri Lanka: A Chinese research ship will be allowed to dock at a Sri Lankan port this week, likely adding to neighboring India’s concerns about China’s growing influence in the Indian Ocean.

The arrival of the Shi Yan 6 follows last year’s visit by a Chinese naval vessel.

The latest ship has been given permission to dock for replenishment at the port of Colombo, the Indian Ocean island’s main port, from Wednesday until Oct. 28, said foreign ministry spokesman Kapila Fonseka.

The vessel had been expected to conduct research with Sri Lankan state institutions, but Fonseka said permission was granted only for replenishment and no research work would be carried out.

“The particular permission is very clear,” he said.

According to Chinese television network CGTN, Shi Yan 6 is a geophysical scientific research vessel on an expeditionary voyage in the eastern area of the Indian Ocean.

Organized by the South China Sea Institute of Oceanology under the Chinese Academy of Sciences, the vessel is scheduled to operate at sea for 80 days, covering a range of more than 12,000 nautical miles (roughly 22,200 kilometers), CGTN reported.

China has been trying to expand its influence in Sri Lanka, which is located on one of the world’s busiest shipping routes in what India considers part of its strategic backyard.

Beijing was once widely seen as having an upper hand with its free-flowing loans and infrastructure investments. But Sri Lanka’s economic collapse last year provided an opportunity for India as New Delhi stepped in with massive financial and material assistance.

Two weeks ago, Sri Lanka reached an agreement with Export-Import Bank of China on key terms and principles for restructuring its debt, an important step toward unlocking a second installment of a $2.9 billion package from the International Monetary Fund aimed at helping the island nation from its dire economic crisis.

Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt, more than half to foreign creditors. China accounts for about 10 percent of Sri Lanka’s loans, trailing Japan and the Asian Development Bank.

Sri Lanka borrowed heavily from China over the past decade for infrastructure projects including a seaport, airport and a city being built on reclaimed land. The projects failed to earn enough revenue to pay for the loans, and in 2017, Sri Lanka leased the seaport in Hambantota to China.

Last year, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka. There were fears in India that the vessel could be used to surveil the region.


Closing Bell: Saudi main market closes the week in red at 10,526 

Updated 25 December 2025
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Closing Bell: Saudi main market closes the week in red at 10,526 

RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.    

The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.  

Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.    

Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).    

On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.    

Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.    

On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.  

Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.    

Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.  

On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.    

The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.  

Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.     

Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.    

The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.