China refuses US$500Mn loan for SL

4 March 2013 03:27 am - 75     - {{hitsCtrl.values.hits}}

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China has refused a loan of US$500 million sought by the Sri Lankan Government to buy petroleum products and stressed that China would only approve only project loans, informed sources said yesterday

A Finance Ministry official said the loan which was being negotiated last year had not materialised because China was only prepared to grant project loans for which interest rates were relatively high.  

China had become Sri Lanka’s biggest lender. The country had obtained US$3.1 billion in loans and export credit to Sri Lanka about 18 months ago. The government had obtained Chinese loans, at interest rates varying from 2.9 per cent to 8.25 per cent, for major development projects such as the building of the Hambantota Port, the Mattala Airport, the Moragahakanda Irrigation Scheme and the Norochcholai Coal Power Plant.  Meanwhile the country’s total debt burden has increased to Rs.6,610 billion with 52 per cent of it being from domestic borrowings. (Kelum Bandara )
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  Comments - 75

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  • mori Monday, 04 March 2013 12:00 AM

    All r selfish in the sense of Foreign Aid,do we really need a port and a 2nd Airport in Hambantota wth a Chinese oppertunitist loan? China gave loans of billion to former yugoslavian republic of Macedonia to keep them away frm recognising Taiwan also did same wth some central American nations.here in our case they did it to keep India away,pls be aware if India want they can split Srilanka into 2 or 3 if needed. via DM Android App

    Sonali De Silva Monday, 04 March 2013 04:56 AM

    Oh Oh!!! Now we are in deep S... Will there be another increase in fuel price in the near future?

    PASEL Monday, 04 March 2013 09:40 AM

    Chin Lanka

    concerned citizen Tuesday, 05 March 2013 12:00 AM

    Now only we know the value of Muslim countries (Kuwait, Saudhi, Iran, Pakistan etc..). they donate billions and dont expect anything in return. via DM Android App

    maneesha Monday, 04 March 2013 05:04 AM

    Why shouldn't they be they have an econimy to run and people to take care of. Our government has failed us

    Maha Rajanani Monday, 04 March 2013 05:05 AM

    Most of the money in Corrupted Officials/Politicians pockets, time to investigate & recover before China Takes over SL.

    Ranjit Monday, 04 March 2013 08:07 AM

    China has started tightening the screws for Lanka. Very soon SL will be in Chinese soup. They will use chop sticks to pick the good ones first.

    Manisha Monday, 04 March 2013 08:13 AM

    Oh dear, so much for Gota saying he does not need the US when we have China. China is not the saintly nation that helps with good will and the interests of the Sri Lankan people. All loans for construction of unnecessary ports and airports, are with a big price tag. We have to pay their prisoners to work for us, pay back the loan with interest. What a snub from our only true "ally" and banker. What now Rajapaksa's? By the way, we are losing support from the other nations who ask for accountability from us. I would not trust China, and put our very existence in their hands. When China demands we pay back our loans, we will have to offer our nation to them!

    Ala Gediya Monday, 04 March 2013 05:09 AM

    Most of the people here are stupid. which country would borrow money to buy petroleum products? we can see the status of the government now. They don't have money to even buy these stuff. Imagine what will happen next. Increase all the taxes and prices.
    How to cover these up? create an ethnic crisis between the Muslims and Tamils. make them the worst enemies of the Buddhists and hide the truth. People will never know the real situation of the country because they will be busy pasting posters and organizing unnecessary protests.

    Hope the Chinese don't takeover Sri Lanka for not paying the debts.
    May god bless Sri Lanka...

    MW Monday, 04 March 2013 09:57 AM

    Next to buy food!
    wonder at majority of comments !

    Mammale Monday, 04 March 2013 12:00 AM

    turn towards middle east for interest free Halaal loans via DM Android App

    Premalal Monday, 04 March 2013 05:22 AM

    This our best friend

    Ranjith Monday, 04 March 2013 09:58 AM

    China man is not stupid to give loan to a company which allow to leak a potion of oil to the earth and another portion to politician's pocket and another considerable amount to the officials and workers finally only about 60% to public. End of the story the CPC will be bankrupt then who is going to pay back?

    raa one Monday, 04 March 2013 12:00 AM

    Do not worry Mr.President, You can collect this money from your ministers easily. Just give a try. via DM Android App

    upasiri Monday, 04 March 2013 12:00 AM

    The best way to get any loans from China is to sell or handover Hambantota Port and Mattala Air Port for Chinese to establish their bases? Then USA and allies will run away from SL. Rajapaksas and Cabrralls are good Economist together with Jayasundera. They can't go wroNg? via DM iPad app

    weera Monday, 04 March 2013 03:39 PM

    Good thinking. I am going to start making bullock carts.

    Don Key Monday, 04 March 2013 10:15 AM

    From good old days Chinese are famous as Dental Technicians (Dath galawanna Dakshai)

    your mom Monday, 04 March 2013 12:00 AM

    and we were beating up India with China in our mind lol love thy neighbor via DM Android App

    jjacoob Monday, 04 March 2013 08:38 AM

    better to offer the country to china rather than co-habit with tamils .. the terras!!

    One true Monday, 04 March 2013 12:00 AM

    Why should we barrow to make an air port. What's the priority? via DM Android App

    D.B Adikari Monday, 04 March 2013 08:32 PM

    Matala International Airport, Hanbantota Port, Norchalia Cole Power Plant and Moragakanda Reseivor are projects-priority National Economy development.
    Our country need foregien develop funds interest of nation progress of whole economy.There is nothing wrong take loans from China develop such projects.Is long-term viable.

    warElephant Monday, 04 March 2013 10:27 AM

    by giving loans for projects, they make insane amount of profits, the loans china gives goes into buying chinese law materials, chinese labour. in the end we have to pay the whole sum back plus interest.

    so in the end they make 200% in revenue + interest (give or take)

    chamzi Monday, 04 March 2013 12:00 AM

    but MR has money to donate Philippine Goofs via DM Android App

    ajj Monday, 04 March 2013 06:15 AM

    Thanks China

    Panikki Monday, 04 March 2013 04:01 PM

    Do Chinese eat Tuna as Japanese ?

    Fayad Monday, 04 March 2013 06:16 AM

    Do not trust cheena

    Ruhunu Kolla Monday, 04 March 2013 10:37 AM

    I am going to quit my job and start a bicycle repair shop!

    Len Tuesday, 05 March 2013 10:15 AM

    Don't blame China its Business remember Don Corleone in God Father?

    Lucky Weeramantry Monday, 04 March 2013 06:32 AM

    Doomsday!

    china Monday, 04 March 2013 03:29 AM

    Kala Warenko!

    Husny Monday, 04 March 2013 12:00 AM

    poor srilanka hahaha... via DM Android App

    Hisham Monday, 04 March 2013 12:00 AM

    time to reap what u sow it is true this is land like no other. via DM Android App

    Haleemdeen Tuesday, 05 March 2013 03:06 AM

    Jayawewa!!

    Talking Point Monday, 04 March 2013 04:24 PM

    Superb !

    Lawry Tuesday, 05 March 2013 03:06 AM

    Better go on the offensive. Boycott all Chines products. Organize protest marches too.

    J.D Monday, 04 March 2013 03:37 AM

    God Bless our Mother Nation.......... Very soon the world will identify SRI Lanka as CHI Lanka........

    vimal weere Monday, 04 March 2013 12:00 AM

    apita China walin loan one ne. api sinhalayo.apita oka maha loku ganakda. Loan eka wenuwata ape Galle face eka illuwa.api denna be kiwwa. via DM Android App

    Lucky Weeramantry Monday, 04 March 2013 06:49 AM

    Legalize Bullock Carts And Rick Shaw To Beat The Fuel Surge.

    Pxx Monday, 04 March 2013 11:10 PM

    China is on Gundam style.

    UnitedWeStand Monday, 04 March 2013 06:53 AM

    I can help the government with finances from Gulf.

    ab Monday, 04 March 2013 12:00 AM

    CBSL chief always says that country's economy is well developed and having enough reserves . Why we need loans then?. via DM Android App

    Nirmala Monday, 04 March 2013 12:00 AM

    soon china will be an enemy via DM Android App

    Ishan Monday, 04 March 2013 09:06 AM

    Every sri lankan citizen owe Rs.30000 to the world?

    Grace Monday, 04 March 2013 04:02 AM

    Is there something called "free lunch" ?

    Ahmad Monday, 04 March 2013 04:01 AM

    Chinese style. They keep give and support you until you are totally depending on them.

    mohamed Monday, 04 March 2013 12:00 AM

    China has given up us,no more arab halal money.evn if we need they wont lend.no more western or India money until 2009may18 accountability comes out.we might eat sand n drink sea water.BBS should come forward to make sure the sand n sea water we eat is non-halal. via DM Android App

    roadrunner Tuesday, 05 March 2013 12:23 AM

    very true

    Raymond Punchisingho Monday, 04 March 2013 09:15 AM

    It is time to sell Sri Lanka to a foreign power, and save the money in a Swiss Bank. The choice is between the USA, India and China.We all hate the Americans and they don't want small fry like us anyway. With the Indians we may see Mr Varadaraja as president. The Chinese will provide us hard work and good leadership, with very good access to the world markets.Let us think of the future. If not our only hope is the honourable Dr Mervyn from Kelaniya. Long may he live to provide us leadership and enlightenment. He will teach the Chinese a thing or two.

    mail_guy Monday, 04 March 2013 04:14 AM

    Here we go. Now we know the importance of India.

    Sambo Monday, 04 March 2013 07:28 AM

    Hambantota Port, the Mattala Airport and Norochcholai Coal Power Plant. These are the projects that have sold the country. Where is the minister who said in a few months we can lend money to western countries... We are all stupid if not a mindless nation.
    Jayaweva...

    Hadi Monday, 04 March 2013 04:27 AM

    Love thy neighbour

    ANTON Monday, 04 March 2013 07:29 AM

    OLD NAME OF THE SRILANKA SHOULD BE BROUGHT BACK "SEA LOAN"

    Gabo Singho Monday, 04 March 2013 07:32 AM

    Half a billion US dollars is a lot of money for a consumer loan for buying petroleum. I can fully understand why it was refused. The Chinese are not dumb.

    Samantha Tuesday, 05 March 2013 08:56 AM

    Actually, we might have to make the name a little longer... like
    "See Loan, Grab Loan"

    akashi Monday, 04 March 2013 12:00 AM

    i guess the chinese must be thinking of "REGIME CHANGE" via DM Android App

    Neo Monday, 04 March 2013 04:25 AM

    Confession of an Economic hit man is becoming real.

    Dinesh Monday, 04 March 2013 04:31 AM

    There China started to bite back......

    Dylan Monday, 04 March 2013 07:34 AM

    How ???????????????????????

    weha Monday, 04 March 2013 04:31 AM

    Now what does cabral have to say ?

    Manisha Monday, 04 March 2013 04:27 AM

    This reminds me a nice poem I learnt from Subhashitha.
    රුදුරු ගිනි කදක් ගත් සඳෙහි වනතුරු
    මිතුරු වේය දිගතින් හමන මදමරු
    මිතුරු නැසීමට එමවෙය් පසමිතුරු
    මතුරු නෑ කෙනෙක් නිවතුන් හට කව්රු

    mohan Monday, 04 March 2013 04:38 AM

    nah iit s going to be Hambantota -chaina (whole country) .

    silla Monday, 04 March 2013 07:43 AM

    exactly

    roo Tuesday, 05 March 2013 12:00 AM

    We shouldn't be angry at Chineese for not lending money but with our selfs for have to depending on others

    Samantha Tuesday, 05 March 2013 09:04 AM

    Nope. they eat frog. Why?

    Yuri Monday, 04 March 2013 07:39 AM

    Do not worry Sri Lanka !China will give the Loan, but gave time to think Sri Lanka to sellect the Port they want to sale it! How about jaffna ?

    Silmiya Pura Monday, 04 March 2013 04:40 AM

    China did a good job, Wake up SL...

    Rahmathullah M. H. Monday, 04 March 2013 07:44 AM

    Very good comments. But, still our people's understanding power is very low. So, the MR & Co can continue to rule by fishing in troubled water.

    Cleo Tuesday, 05 March 2013 09:09 AM

    Is this called ''CHEENA PATAS''

    Sujeewa Tuesday, 05 March 2013 07:17 AM

    We always criticize middle eastern countries, but it seems that they are the only once that helps us financially.. Not even india likes us.

    SL_EXPATS Monday, 04 March 2013 07:53 AM

    Very good statement, that is the real fact.

    legend Tuesday, 05 March 2013 12:00 AM

    Wow

    nimal pathirage Monday, 04 March 2013 04:48 AM

    Oh God, I thought what we got from China was outright grant or interest free loan. They are real poli mudalalis

    ANTON Monday, 04 March 2013 08:01 AM

    FINE MANISHA

    shihan Monday, 04 March 2013 09:36 AM

    Just you wait. We will get you for this.


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