China's Yuan Wang 5 is a surveillance ship that is used for tracking and support of intercontinental ballistic missiles. Colombo, last month, has allowed the ship to be docked at the Hambantota port and this gave rise to security concerns in New Delhi. Following India's concerns Sri Lanka has deferred the ship from docking at its port.
India's opposition has been called "senseless" by the Chinese authorities saying "relevant" countries like India should stop disrupting normal exchanges between Beijing and Colombo. The Chinese vessel was expected to dock at the Sri Lankan port for refueling and replenishment and conduct satellite control and research tracking in the northwestern part of the Indian Ocean through August and September.
The Hambantota port and its location is considered to be important for its location as the port is located in the hometown of the former president of Sri Lanka, Gotabaya Rajapaksa and it has been developed largely with Chinese loans.
The ties between Sri Lanka and India have been previously strained in 2014 when Sri Lanka has given permission to a Chinese nuclear powered submarine to dock in one of its ports. China is the main creditor of Sri Lanka with investment in infrastructure. Debt structuring of Chinese loans would be key to the country's success in the ongoing talks with the International Monetary Fund for a bailout. India has been on the forefront by extending assistance of about $4 billion.
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