Central Idea

In a significant move towards expanding the Belt and Road Initiative (BRI) in South Asia, China has expressed its commitment to prioritize the extension of the China-Myanmar Economic Corridor (CMEC) to Sri Lanka.

What is CMEC?

	Details
Geographical Scope	Connects China’s Yunnan Province with Mandalay, Kyaukphyu SEZ on the Bay of Bengal, and Yangon in Myanmar.
Strategic Importance	Provides China an alternative to the Strait of Malacca for trade and energy transport. Offers a shorter, more secure route to the Middle East and Africa.
Infrastructure	Involves building roads, railways, ports, and industrial zones. Key projects include the development of the Kyaukphyu deep-sea port.
Economic Impact on Myanmar	Promises infrastructure development, foreign investment, and job creation in Myanmar. Raises concerns about debt sustainability, environmental impact, and displacement of local communities.
Political and Security Challenges	The corridor passes through politically sensitive and conflict-prone areas in Myanmar, posing challenges to its implementation and stability.

China’s Strategic Priority: State Councillor Shen Yiqin emphasized that China is making the extension of the CMEC to Sri Lanka a strategic priority.
Free Trade Agreement Acceleration: Both nations affirmed their commitment to expediting the implementation of the China-Sri Lanka Free Trade Agreement, reinforcing their economic partnership.

CMEC’s Emergence: CMEC is the latest addition to the six land corridors within the Belt and Road Initiative, gaining prominence over the stalled Bangladesh-China India Myanmar (BCIM) corridor.
South Asian Perspective: India and Bhutan remain outside the BRI framework, while countries like Sri Lanka are enthusiastic participants, poised for a more substantial economic contribution in the second phase of the initiative.