For nations eyeing Chinese Belt & Road money, Lanka has some costly lessons

In the middle of a brand-new four-lane highway cutting through southern Sri Lanka’s jungle, Vijitha Gamage and his family left large piles of freshly harvested rice paddy to dry on the baking asphalt.

They didn’t need to dodge traffic. On a recent afternoon, the barely used highway built with Chinese money through a rural stretch of the island nation carried more 50-kilogram (110-pound) rice sacks than vehicles. "The road gets really hot, so the rice dries faster," Gamage said.

The project is one of several in Sri Lanka that offer lessons for countries looking to snag some of the more than $500 billion projected to underpin Chinese President Xi Jinping’s Belt and Road infrastructure initiative. Interviews with the nation’s politicians, government officials and financial experts show that mitigating the risks is key to maximizing opportunities.

When a 25-year civil war ended in 2009, Sri Lanka had little choice but to turn to China. Beijing stepped up aid and arms shipments as the US and Europe withdrew funding, leaving China in position to quickly offer loans and financing.