Here's your 10-point cheatsheet to this big story:
The Yuan Wang Class ship -- expected to dock in Hambantota Port on August 11 or 12 -- tracks satellites and intercontinental ballistic missiles. The ship, which has a crew of 400, is equipped with a large parabolic tracking antenna and various sensors.
If deployed in parts of the Indian Ocean, the ship may be able to monitor India's missile tests from Wheeler Island off the coast of Odisha.
By tracking Indian ballistic missile tests, China will be able to glean information on the performance of missiles and their exact range.
The Sri Lankan government has told NDTV that they will allow the ship to dock since it is a non-nuclear platform but are aware of India's concerns. "China informed us that they are sending their ship for surveillance and navigation in the Indian Ocean," said Sri Lanka's Defence Ministry media spokesman Colonel Nalin Herath.
Indian government sources said they are monitoring the progress of the ship. India has made it clear it will closely monitor "any bearing on India's security and economic interests and takes all necessary measures to safeguard them".
The Yuan Wang is likely to avoid the busy straits of Malacca and enter the Indian Ocean through other Indonesian straits.
The ship is controlled by the China National Space Administration but has very significant military applications.
India remains suspicious of China's growing influence in Sri Lanka, which owes large amounts of money to Beijing for infrastructure projects, including the $1.4-billion Hambantota Port.
Sri Lanka gave a Chinese company a 99-year lease on the port, located along the main East-West international shipping lanes, in 2017 after being unable to keep up with debt repayments on the facility. Sri Lanka defaulted on its $51 billion in foreign debts in April and has since opened bailout talks with the International Monetary Fund.
In 2014, a Chinese submarine had docked at Hambantota Port, sparking security concerns for the Indian Navy. No such Chinese submarine visits to Lankan ports took place since.
China's 'White Mafia' Helps Women Confront Abusive Exes, Dishonest Landlords China Woman Hires Actors To Pose As Family, Extorts Money From Blind Date Opinion: Opinion | India And China: 'Compartmentalising' May Not Help 4-Year-Old Boy Run Over By Speeding Creta In Mumbai, Teen Driver Arrested BJP Leader Who Lost To Priyanka Gandhi Challenges Election, Congress Reacts Stepwell, Likely 150-Year-Old, Discovered During Excavation In UP's Sambhal Man Learnt To Make Bombs Online To Target In-Laws, Arrested: Gujarat Cops Helicopter Crashes Into Turkish Hospital During Take-Off, Four Killed PM Modi Gets Kuwait's Highest Honour 'The Order Of Mubarak Al Kabeer' Track Latest News Live on NDTV.com and get news updates from India and around the world.