India has formally lodged its concerns with Sri Lanka with regards to a Chinese research vessel which is set to arrive at the Hambantota Port next week, informed sources said.

Sources said that concerns were raised at the “highest levels” over Sri Lanka’s decision to allow ‘Yuan Wang 5’ to dock at the Hambantota Port.

India has raised the issue of the scheduled visit of a Chinese research vessel to Colombo Port with President Ranil Wickremesinghe, after the Ministry of Defence in Colombo confirmed the ship’s arrival, despite New Delhi giving a “clear message” on its concerns.

While there is no official statement so far from either the Indian mission in Colombo, or the President’s office in this regard, the matter “was raised at the highest level by the Indian side,” an official source in Colombo,confirmed.

Following media reports last week of ‘Yuan Wang 5’ — a Chinese vessel involved in space and satellite tracking — calling at Sri Lanka’s southern Hambantota Port, the Ministry of Defence denied such a vessel was arriving.

However, taking back its denial within days, the ministry said last weekend that it had cleared the vessel’s entry into the Chinese-built Hambantota Port, where it would dock from August 11 to 17.

The confirmation not only sparked serious concern in New Delhi, but also raised eyebrows in Colombo too, coming two days after Ministry of External Affairs spokesperson Arindam Bagchi’s media remarks that India “carefully monitors any development having a bearing on its security and economic interests”.

China has defended the ship’s visit and asked “relevant parties” to “refrain from interfering” with its “legitimate maritime activities.”

Members of Sri Lanka’s political opposition on Monday commented on the vessel’s scheduled arrival, and urged the government not to “accentuate” India’s strategic concerns, especially at a time when Colombo is counting on urgent economic assistance from both New Delhi and Beijing to tide over the island’s economic crisis.

Opposition parliamentarian Dr. Harsha de Silva said in a tweet on Monday: that he fervently hopes the ‘highest level’ of the country will resolve this before getting out of hand. India and China are dependable friends and we certainly don’t need to change that. Specially now when we desperately need both to help us.”

The opposition Tamil National Alliance, too, weighed in on the development in a series of tweets. “Chinese space-craft tracking ship Yuanwang-5 entering the Hambantota harbour on 11 August has again given rise to tensions in the region.

We do not take sides with regard to power struggles between other countries. But we have also consistently stated that China’s military presence in the Indian ocean would give India a legitimate Defence concern and that SL should not accentuate that by providing space for Chinese military presence in SL,” the Alliance said.

The ship is set to arrive at the Hambantota Port on 11 August and will remain at the port till 17 August.

Sources said that Sri Lanka has so far refused to block entry to the ship despite the concerns raised by India.

The ship is expected in Sri Lanka for refueling but India is concerned the presence of the ship will pose a threat to its national security.

Yuan Wang-class vessels are used for tracking and support of satellite and intercontinental ballistic missiles.

India is concerned the vessel can be used to spy on India while docked at the Hambantota Port.

Marine traffic showed that the vessel had departed from the Jiangyin Port, in China on 13 July and is currently sailing at 19.0 knots and is heading to Hambantota.

Yuan Wang-class vessels are used for tracking and support of satellite and intercontinental ballistic missiles.

China had last week defended its right to bring its ship to Sri Lanka as the Sri Lankan authorities had given approval.

On Friday the Chinese Government had said it hoped the relevant parties would refrain from interfering with its legitimate maritime activities.

Sri Lanka poultry industry is in trouble facing several challenges for its survival due to the rise in the price of chicken feed and other raw material and a drop in demand among local consumers as they cannot afford to pay high prices of chicken and eggs, several industry leaders said, adding in a crisis where local demand has dropped, exports should be encouraged.

The business of eggs and chicken was once considered a profitable venture, but not anymore as the poultry industry is witnessing a recession. Both the farmers and the traders are greatly affected by the economic downturn and many farmers have even given up production, they pointed out.

In the meantime, people’s dwindling purchasing power has kept demand below 5.9 kg per capita, leading to an oversupply in the local market.

The price of a kg of frozen chicken with skin has gone up to over Rs.1300 from around Rs. 630 earlier and the price of egg has risen to Rs 50 from Rs. 25 .

As per the traders, this business has suffered losses for the past two years owing to the COVID-19 shutdown and mobility restriction in the country, followed by the economic crisis along with the dollar shortage resulting in the winding up of numerous poultry farms by big and small farmers.

The challenge of declining demand of chicken meat among consumers as a result of ever increasing prices due to high production cost could be turned to an advantage by seeking export markets, Yakooth Naleem, Managing Director of Bairaha Farms,disclosed., .

He noted that the new administration should initiate government to government agreements facilitating poultry producers to export their products to earn much needed foreign exchange for the country.

Mr. Naleem urged President Ranil Wickremesinghe, who is also the Finance Minister, to hold discussions with West Asian and other countries including China along with regional markets in South Asia which are willing to purchase poultry products.

He revealed that his firm has already established contacts with several West Asian buyers who are ready to place purchasing orders.

However he noted that poultry producers have to pay VAT, NBT and income tax excluding other duties and indirect taxes, in particular tax (CESS) on maize and other consumables, which are also substantial in amount and becomes a stumbling block under the present economic difficulties.

Several leading poultry production firms, which control an estimated 65 percent of the market, are forced to export their produce to maintain margins, he said.

All Island Poultry Association (AIPA) Chairman Ajith Gunasekara disclosed that the industry has already invested heavily for poultry production and the government should provide more incentives for producers to enter lucrative export markets enabling them to contribute their share to boost foreign exchange inflows.

The local industry exports eggs, chicken, and value-added products such as processed meat to Nepal, Maldives, and West Asia, he revealed.