India has surpassed Russia and Japan to become the third most powerful country in Asia after the US and China.

Japan’s waning power has been attributed to its economic decline. Tokyo has fallen to fourth place in most of the indicators assessing the most powerful and influential Asian nations.

The annual Asia Power Index, started by Australia’s Lowy Institute think tank, measures resources and influence to assess the relative power of states in Asia.

It is an analytical tool that ranks 27 countries and territories in terms of what they have and what they do with what they have – reaching as far west as Pakistan, as far north as Russia, and as far into the Pacific as Australia, New Zealand, and the United States.

The 2024 edition—which covers six years of data—is the most comprehensive assessment of the changing distribution of power in Asia to date.

The 2024 Asia Power Index highlights the shifting power dynamics in the region. The United States is still dominant but faces rising military pressure from China. The countries are assessed based on their economic, defense, diplomatic, and other strengths. China has seen military gains, but its overall influence has plateaued.

The key findings of the survey are that China’s power is neither surging nor collapsing. It is plateauing below that of the United States but still well above any Asian competitors. The United States has bolstered its standing in Asia — though it is losing ground to China on Military Capability.

“India is rising although a tad bit slowly. India has overtaken Japan to become the third-ranked power in Asia, but its clout remains below the potential promised by its resources,” the survey reports.

India’s power in Asia is growing, overtaking Japan to take third place for its comprehensive power for the first time. However, the gap between the expectation of “India rising” and reality remains pronounced.

“The Asia Power Index shows that New Delhi still has limited ability to project power and influence east of the Malacca Strait. However, the fact that its influence remains well below the level promised by its resources suggests it still has ample potential for further growth as a major power,” the report says.

With Japan taking a stand on security issues in the region, its image is changing from an economic and cultural powerhouse to one much more active in defense and security.

Tokyo’s economic clout is waning due to rising competition, especially in areas where it once had a formidable technological advantage. These have “eroded sharply in the face of competition from other advanced manufacturing hubs in South Korea, China, and Taiwan.”

Tokyo, however, also gained points in the ranking as it takes on a more prominent role in the defense and security sphere. The report noted increased collaboration with Washington and other regional partners. Tokyo has stepped up as a regional security provider, a development exemplified by its signing of a Reciprocal Access Agreement with Manila.

The power game in Asia, however, continues to be bipolar, with the world’s two superpowers topping the ranking by a considerable margin.

“The United States and China appear to be digging in for a long contest. China’s power is neither surging nor collapsing but plateauing. Flatlining Economic Capability, driven by slower economic growth and longer-term structural challenges, means that China’s economic clout, while still commanding, is no longer growing,” the survey found.

The US leads China on six out of eight parameters in the Asia Power Index. However, its advantage on one key metric is eroding: China has continually improved its Military Capability and has closed more than a quarter of the lead that the US had in 2018. “For the first time, experts surveyed for the Asia Power Index judged that China is better able to deploy rapidly and for a sustained period in the event of an interstate conflict in Asia,” the report said.

China’s ability to wage protracted war has come at a time when Beijing has upped the ante against the self-ruled island of Taiwan.

China’s Plateauing Power

The key takeaway from the survey is that China’s power is neither surging nor collapsing. Instead, it has started plateauing at a level below that of the US. However, it is still way ahead of its Asian competitors.

Acknowledging that China’s power is assessed from two extreme perspectives: “China eclipsing the United States and becoming an unstoppable regional hegemon, or China ‘peaking’ and failing to sustain a competitive edge.”

The 2024 Asia Power Index, however, reveals that China’s power is neither collapsing nor increasing exponentially. Instead, it shows China finding a new “settling point” — with power below that of the United States but well ahead of any other country in Asia.

On the parameters of defense and security, China still has scope for growth. China’s Military capability increased slightly as it added more new capabilities than other Index countries.

But the People’s Liberation Army is still facing the deficiency is projecting power beyond its borders. The survey assesses that although China will not exceed the US in terms of overall Military Capability for the foreseeable future, that may not be needed to achieve its strategic objectives in East Asia, including Taiwan and the South China Sea. (Eurasian Times)

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South and Central Sri Lanka have been listed among the best places to visit in Asia in 2024.

According to the luxury travel magazine, Condé Nast Traveller, Sri Lanka is emerging phoenix-like from the economic crisis and responding with a new food festival, wellness-oriented retreats and a hiking trail that snakes through 300 kilometres of hill country and centuries of history. 

Further describing Sri Lanka, Condé Nast Traveller says rising from economic uncertainty, Sri Lanka’s tourism industry is in the midst of a luxury and wellness boom – from its tea-filled highlands to its palm-fringed shores. 

In the south of the country, new luxury resorts continue to entice. Among them are, Kayaam House and Ahu Bay by homegrown luxury travel specialist Resplendent Ceylon; a Hilton resort next to the Indian Ocean-bordering Yala National Park, one of the best places to spot Sri Lanka’s elusive leopards; and the art deco-inspired The Charleston, which opens in December in the UNESCO-listed Galle Fort. 

The already established Kalukanda House – a colonial villa in surf town Weligama by British-Sri Lankan interior designer Dee Gibson – is making its mark with retreats centred on female empowerment, with yoga, breathwork, reiki and Ayurveda included.

A comprehensive renovation of the nine-room Meraki, which employs local women and offers yoga, holistic treatments, island-sourced vegetarian fare and artisanal crafts in the Polhena Beach district of Matara, is set to be unveiled in early 2024; and luxury fitness getaway Makahiya is gearing up to launch its own brand of bespoke retreats.

In January, the Galle Literary Festival will return after a five-year hiatus, with appearances by literary figures such as Shehan Karunatilaka and Alexander McCall Smith, while Gourmet Galle, the country’s new food festival, will spotlight 12 chefs in 12 venues, ranging from beaches to paddy fields, over a 12-week period from January to March.

Inland, development of the Pekoe Trail, a new 300km network of hiking routes that snakes its way through Sri Lanka’s highlands, continues. Traversing historic tea plantations, colonial estates, local villages, holy shrines, and forests brimming with biodiversity, it’s a novel way to experience Sri Lanka’s lush hill country, particularly when paired with stays at boutique properties such as W15 Hanthana, the luxurious Goatfell, or the Kelburne Estate, scheduled to open in December 2024. 

According to Condé Nast Traveller, its list of the 11 best places to visit in Asia in 2024, entirely informed by contributing writers spread across the world, is packed full of reasons to head east next year. 

Full report : https://shorturl.at/gmvDZ (NewsWire)

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The Sri Lankan rupee has turned into Asia’s worst-performing currency from being the best in the first half of the year, according to Bloomberg News.

The report states the rupee is poised to extend losses amid headwinds from interest-rate cuts and the loosening of import controls.

The currency has tumbled more than 6% this month as it fell a 14th day on Monday, on track for its longest daily losing streak in almost five years. 

That’s a stark reversal from its stellar performance in the first six months of this year when the rupee was Asia’s top performer with a 19% advance. 

According to Natixis SA in Hong Kong, the currency may further weaken by 8% by year-end.

Demand for dollars is rising as the crisis-hit nation eases import controls on more goods such as tiles and medical supplies. Sri Lanka cut its benchmark rate for the second consecutive meeting early this month amid faster disinflation, a move that’s also weighed on the currency.

“The trade balance will go more negative and more rate cuts may come as inflation is cooling rapidly,” said Haoxin Mu, an economist at Natixis SA. Mu forecasts a further 8% depreciation in the rupee to about 355 per dollar by the end of the year.

The rupee volatility is due to banks covering positions, central bank Governor Nandalal Weerasinghe said last week. 

Businesses should use hedging instruments, avoid basing decisions on the exchange rate and instead use inflation expectations, he said. (NewsWire)

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