Table of Contents

1.Introduction
2.Sri Lanka and the 21st—Century Maritime Silk Road
2.1 The Unique Geograpical Location of Sri Lanka in the Silk Road
2.2 Strategic Considerations of Sri Lanka's Participation in the 21st—Century Maritime Silk Road
2.3 The Attitudes of the New Sri Lankan Government towards the 21st—Century Maritime Silk Road
3.Dynamics of the Sri Lankan Economy and Potential Macroeconomic Risks
3.1 Basic Features of the Sri Lankan Economy
3.2 The Structural Problems of Sri Lanka's Economy
3.2.1 Sri Lanka's Fiscal Deficit Risks
3.2.2 External Debt Risks
3.2.3 Internal and External Imbalances and Risks of Policy Failure
3.3 Economic Policy Challenges for the New Government of Sri Lanka
4.Sri Lanka's Diplomatic Balancing Strategy
4.1 Sri Lanka's Relationship with India
4.2 Sri Lanka's Relationship with Japan
4.3 The New Government's Policy Shift and Implications for China
5.The Negotiation of Sino— Sri Lanka FTA
5.1 The Role of Sino— Sri Lanka Free Trade Agreement
5.2 The Negotiation Progress of the Sino—Sri Lanka Free Trade Agreement
6.Behind the Interruption of the Colombo Port City Project
6.1 The Colombo Port City as a Flagship Project of the 21st—Century Maritime Silk Road
6.2 Reasons of China's Port City Interruption
6.3 Prospect of the Colombo Port City Project
7.Conclusions
References

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Secondly， she made a comparison between China's and India'sassistances.Although both are important emerging donor countries，obvious differences appeared in the way of assistance.India's aidis mainly grants， while China's aid is mainly concessional loans.Government of Sirisena once complained that the interest rate of Chineseloan was too high， leading to high interest burden for the Sri Lankangovernment.Although there was not any conditions imposed in China'sassistance， many of India's assistance has clear demand that the moneyshould be used in northern Sri Lanka， which is Tamil residential area， andhave close ties to India.She believed that China's development assistancehad been more fiexible and not interfering in the internal affairs， whichreflect the real partnership， while the western countries greatly limitedthe assistance to Sri Lanka because of human rights problems.But shealso said that China can also consider setting up some conditions， inorder to improve Sri Lankan governance.She suggested that such kind ofconditions can be made in terms of environment， migration， etc.， so as toimprove the local governance.