Sri Lanka will soon build a second international airport on the south of the island, with much of the money coming from China.

Beijing will lend about $200 million for the airport project and also make another $100 million available to re-fit the island's ageing rail network.

The new airport will be near a sea port which is currently being developed with Chinese funds.

Both India and China have been vying for contracts in Sri Lanka following the end of the 20 year civil war, but already China is supplying more than half of all the construction and development loans for the island.