Debt trap a fabrication of the West: Chinese Embassy

6 July 2018 02:12 am - 12 - {{hitsCtrl.values.hits}}

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In the wake of New York Times reports on Chinese loans to Sri Lanka, the Chinese embassy said yesterday the so-called "Debt Trap" is a false proposition created by the Western media in a direct attempt to obstruct the joint development of China and other developing countries including Sri Lanka.

Addressing a news conference, Embassy spokesperson Luo Chong said the fundamental purpose of making such allegation was to maintain the western world's "traditional" superior position in the international and regional politics and economics.

He said China would continue to provide ‘selfless support’ including much-needed funds for the development of Sri Lanka, and would like to work together with the Sri Lankan government, business community, media and the general public to eliminate interference, strengthen confidence, and jointly promote the pragmatic cooperation for the benefit of the two countries and the two peoples.

“Chinese loans are not the main part of Sri Lanka's foreign debt. According to the Annual Report 2017 of the Central Bank of Sri Lanka, the total external debt of the country amounted to US $ 51.824 billion. Of it, the outstanding Chinese loans accounted for 10.6% or US $ 5.5 billion. Besides, 61.5% the Chinese loans (USD 3.38 billion) are concessional ones with a much lower interest rate than the international market rates. The commercial loans from China were also negotiated at an appropriate rate by the two sides according to the then international market,” he said.

Mr. Luo said the transfer of operation of the port to the Chinese side was also proposed by the Sri Lankan government only, and it was finally agreed after rounds of ‘friendly and equal’ commercial negotiations.

“The purpose was to fully exploit the geographical advantages of Hambantota, improve operational efficiency and revitalize good assets, so as to further develop the port economy of Sri Lanka. At present, the port business is operated by Sino-Sri Lankan joint ventures, the port revenue is shared by both sides, and the port security is entirely under the responsibility of the Sri Lankan government,” he said. (Kelum Bandara)

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Comments - 12

Sun Friday, 06 July 2018 04:35 AM

It's not the loans the Sri Lankan are interested in but the underhand funds the Chinese have given to the previous leader.

Be true Friday, 06 July 2018 09:15 AM

Chinese culture those a promotional expenses but Sri Lanka st this a bribe and paid to the X head of the state. If vijeakala can be under investigate

shanthapriya Friday, 06 July 2018 10:14 AM

Oh dear dear but it is still beneficial to sri lanka whatever the underhand amount is. Not like what the present fools do

Ram Friday, 06 July 2018 05:58 AM

Loan shark will never accept that he is one.

Harith Friday, 06 July 2018 09:00 AM

Not even USD52bn of external loans and facing issues of repaying it. When you see these numbers you feel so sad about the country.

SL Friday, 06 July 2018 09:11 AM

The fact is that ,90-95% our parliamentarians are greedy on money and they stress on commission for what ever the money transaction happens with private sector.not only parliamentarians,gvt officials are also involve with commission scandals. if our officials were genuine this would have not happened.

BuffaloaCitizen Friday, 06 July 2018 09:32 AM

China cannot be faulted for the methods they adopt to gain benefits for their country, it is the crooks in Sri Lanka who agreed to these terms, even to the extent of selling the sovereignty of the nation who are the traitors.

Ucnhikun Friday, 06 July 2018 09:43 AM

I am not a Pythagorus (apologies to Mr. Modawansa). I can use a four function calculator. If what China did to Sri Lanka (giving loans at high interest rate and short grace periods) is not a debt trap what can we call it. A "Death Trap"?

Ajja Friday, 06 July 2018 11:13 AM

Giving SANTHOSAM is a common phenomena in the world around where no one can stop and it is like the Oldest Profession...

vithura Friday, 06 July 2018 02:25 PM

It is not the just loan agreement per se that is in focus, it includes other conditional parallel agreements entered into which are the real traps. Just as they did in Africa building rail tracks in exchange for more valuable large tracks of green belt lands on terms very favourable to China.

chandra Friday, 06 July 2018 04:49 PM

As a Law Full Citizen I trusted China rather than MR. But Now I have doubt because Chinese Embassy is giving more explanation without conducting proper investigation.

DG Friday, 06 July 2018 07:20 PM

Loans that create a burden on the Treasury due to non generation of adequate revenue from the projects that used these funds create debt trap. H`tota Port and Mattala are falling into this category. Treasury officials are responsible for this.Though Chinese loans are amount around 10% the money is not small. Some debt is not a burden but payable with generated income. Treasury should explain the true burden.

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Debt trap a fabrication of the West: Chinese Embassy

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