Gleaming cranes stretch out on the waterfront in the Sri Lankan capital Colombo as Chinese companies construct a $1.5 billion new commercial district, including hotels, marinas and a motor racing track. They have already built a giant container terminal nearby and a huge port in the south.
Now India, the traditional power in the region, is muscling into port and other projects, pushing back hard against China.
The big fear for India is that Sri Lanka, just off its southern coast and on one of the...
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