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If Chinese loans are expensive, why ask for another?- Envoy

2 November 2016 07:32 am - 57     - {{hitsCtrl.values.hits}}


Chinese Ambassador Yi Xianliang , who responded yesterday to criticism that the Chinese loans were expensive, said yesterday that he had asked Finance Minister Ravi Karunanayake why he talked about yet another loan from China if the loans were expensive.

At a media briefing of a select group of journalists, the Ambassador said his government had stipulated fixed lending rates for developing countries. Asserting that the concessionary loan rate was only two percent, he said Sri Lanka could borrow a significant amount from EXIM Bank of China based on the relations between the two countries.

“Some ministers also criticised saying Chinese loans were expensive. We have regular or fixed interest rates for developing countries. It is two percent not only for Sri Lanka. It is five percent for commercial loans,” he said.

He said, “I spoke to Ravi, the Minister of Finance. Ravi has criticised this many times publicly. I asked him, "If you don’t like this one, why do you, again, talk with me about another?”

Commenting on the Port City project, he said it was an investment of US $ 1.4 billion and very important for Sri Lanka.

‘Unfortunately, it was suspended for one and half years. But, through the efforts from both sides, importance was attached to this project. Despite the suspension, we have made no policy change towards Sri Lanka. China and Sri Lanka were, indeed, friends for 1600 years, not just from the last year. We request the company concerned to follow the instructions and decisions taken by the government of Sri Lanka,” he said.

He said the company sustained a daily loss of US $ 1 million due to the suspension, and asked what would be the end result if a project of another country were suspended in that manner.

“We have no hidden agenda here. We follow the law,” he said.

He asked how Foreign Direct Investments(FDIs) could be attracted if projects were changed along with the change of governments. (Kelum Bandara)


Video by Buddhi

  Comments - 57

  • Truth Wednesday, 02 November 2016 03:09 PM

    What has happened to these people who are making comments? You let down your Finance Minister and appreciate comments given by a foreigner. Are you Sri Lankans?

    dd Wednesday, 02 November 2016 03:21 PM

    rate is not a problem Chinese Sir.. commission is the problem.. my people ready to pay 20 percent VAT in next budget.. via DM Android App

    Yuri Wednesday, 02 November 2016 03:28 PM

    it will never end asking money until they sale a part of the country settle all loans. problem is all the gov do not have any blue print for real developments

    ColomboHadaya Wednesday, 02 November 2016 03:30 PM

    why all these bars bara.. FM said Chinese loans are expensive. He never said there don't want the loans... doesn't matter how expensive we will be still needing them to develop what?.....

    Yuri Wednesday, 02 November 2016 03:32 PM

    Ceylon citizens want everything free. job but no working. money but no working development but no tax.

    Cheetac Wednesday, 02 November 2016 03:37 PM

    Shame on you Ravi

    Sandaruwan Wednesday, 02 November 2016 03:45 PM

    Regardless of his nation he expressed the truth well said Ambassador !

    Rasheed Wednesday, 02 November 2016 03:46 PM

    Yes, he another Mahendran.

    saman Wednesday, 02 November 2016 03:48 PM

    Utter humiliation. Starting from the top, this lot has no shame by the way.

    Maya Wednesday, 02 November 2016 03:54 PM

    That comments were for local politics, Ambassador. You better shut your ears on it. You must know the country and its politicians. Ha.. Haa... but don't say no to another loan.

    kapila Wednesday, 02 November 2016 03:53 PM

    Ambassador you are correct via DM Android App

    john Wednesday, 02 November 2016 04:11 PM

    Hundreds of millions of Euros to Sri Lanka? sure this is a news to PM too. Greece on its knees, they are begging every single cent, you guys are on a dream land.

    john Wednesday, 02 November 2016 04:13 PM

    pocket money for UNP and Mahendran clan.

    Hapuarachchi Wednesday, 02 November 2016 09:10 AM

    Sri Lanka is been humiliated cos of the big mouth of the FM. This is ridiculous!!

    lankan Wednesday, 02 November 2016 04:15 PM

    Because, we have corrupt politicians and top officials who wants to line up their pockets!

    Katata Wednesday, 02 November 2016 09:12 AM

    When PM visited EU they have hundreds of millions of Euros for free and this doesn't include aid from EU countries separately like Spain that is funding several flyover incl the longest in SL

    john Wednesday, 02 November 2016 04:15 PM

    And you lost every single promise made by UNP govt.

    DillonDP Wednesday, 02 November 2016 09:14 AM

    Fair enough, it was a common practice the new incumbent government to stop projects of their predecessors just to sling mud, may be they and the people in general thought they could do the same with China, a bitter lesson learnt, but never we would learn from it.... thats us

    Ahmed Wednesday, 02 November 2016 09:24 AM

    what a shame! when will we stop asking loans from other countries ?

    Dutugamunu1 Wednesday, 02 November 2016 09:27 AM

    It is too late for UNP to understand the damage RK is doing .No actions against release of Prados .Yahapalanaya at its best.

    Soria Wednesday, 02 November 2016 09:34 AM

    The interest rate for the Hambantota port is 6-7 percent. But this guy says China have loans for 2 percent LOL

    Thanos Wednesday, 02 November 2016 09:38 AM

    Well said Mr. Ambassador! Beggars don't get to be choosers. The only countries that financially support us are China, Japan and India. Our wonderful western allies are not doing scrap for our economy. They are just full of hot air. Without economic support this country would collapse.

    Ex President Wednesday, 02 November 2016 05:15 PM

    Talking like gents begging like beggers. via DM Android App

    Citizen Wednesday, 02 November 2016 10:01 AM

    Very well said, Ambassador!

    Popa Wednesday, 02 November 2016 05:45 PM

    john for your info it was the rest of EU that bailed out Greece. Specifically Germany

    karu Wednesday, 02 November 2016 05:46 PM

    His Ex. The Ambassador is a well learned diplomat whereas our FM is a half learned politician. We borrowed, enjoyed, now pay at any cost.

    Avisenna Wednesday, 02 November 2016 10:09 AM

    Oops. I forgot. out of government too long Sir. via DM Android App

    Popa Wednesday, 02 November 2016 05:46 PM

    John there wasn't any Mahendran when Hambantota port was built

    Kolla Wednesday, 02 November 2016 05:52 PM

    Japan also gave us 34 Billion rupees as aid

    ziyard Wednesday, 02 November 2016 10:24 AM

    well said Mr.ambaasador !

    Praba Wednesday, 02 November 2016 10:28 AM

    Because we have countless number of politicians, their relatives and henchmen to feed.

    Mevan Wednesday, 02 November 2016 10:31 AM

    Looks like ambassador is feeling sorry for losing a permanent outpost in Indian ocean.

    mm Wednesday, 02 November 2016 10:33 AM

    heeheee.. hoda wade Ravi. via DM iOS App

    jery Wednesday, 02 November 2016 10:45 AM

    now go behind USA u will get bag a full . u guys are clueless

    harsha Wednesday, 02 November 2016 11:04 AM

    Well said. Sri Lankan policy is messing around. via DM Android App

    RESPOND Wednesday, 02 November 2016 11:09 AM

    As usual there will be a concocted jargon of words responding to this hard hitting message of the Chinese Ambassador.

    eyeman Wednesday, 02 November 2016 11:11 AM

    Mr Minister, don't look up and spit. All big mouths must be controlled.

    ADF Wednesday, 02 November 2016 11:17 AM

    Well said and well done Sir ., some of so called elite politicians hopefully can learn from this (i doubt) ,,, also not to mention to have a back bone to speak their mind..

    Pop Wednesday, 02 November 2016 11:24 AM

    I find it funny how the envoy says China have loans for 2% when interest rate for Htota is 7%

    SiraSira Wednesday, 02 November 2016 11:29 AM

    When compared to aid US, EU, India ,Japan give us China only gives us peanuts! China only give loans at high interest and shout like this when we ask for lower

    lkboy Wednesday, 02 November 2016 11:37 AM

    I actually wonder if this Finance minister is a capable one.

    DG Thursday, 03 November 2016 03:30 PM

    China is a long standing friend of this country and none should spoil that relationship. They have given loans at our request and those who used those funds are responsible and not China. But 2% loans stated by the Ambassodor may be very few and most loans taken during last regime seem to be around 6%.H`tota phase 1 loan of $ 306 Mn reported at 6.3%. May be we get loans at 2% now and Finance Ministry should confirm that.

    Oppa Wednesday, 02 November 2016 12:28 PM

    The envoy is much more humiliated lying about 2% interest rates when they gave loans for 7%

    K shantha Wednesday, 02 November 2016 12:31 PM

    When ambessador of a foreign country make a comment like this, the govt should issue a official statement as a reply. We are all awaiting for our reply

    Naren Senaratna Thursday, 03 November 2016 09:51 AM

    That was a brilliant slap in the face .. I saw it on the news .. bravo ambassador Yi Xianliang .. well said!! That's how you address someone who acts in a detrimental manner to the good relations we have had between the two countries.

    Bala Wednesday, 02 November 2016 12:53 PM

    Port City was suspended because MR gave Chinese freehold land in SL with serious repercussions like maritime boundary claim from China. Chinese are now covering up this ulterior motive.

    Sofia Wednesday, 02 November 2016 12:56 PM

    Yes they lost the land they got free through port city project. They are claiming so much innocence now.

    HD Wednesday, 02 November 2016 09:13 PM

    If one day UNP will to collapse, RK contribute to 99% !!!

    The Capitalist Wednesday, 02 November 2016 02:04 PM

    The fact that our Finance Minister says and does stupid things is no secret.But, in this case, he is mostly right. Most Chinese loans were very high interest and we are still facing the consequences.

    Premalal Wednesday, 02 November 2016 02:04 PM

    When politicians are out of power they like to sing songs. When they get back to power they still sing but from a different music sheet.

    Fernando Wednesday, 02 November 2016 02:05 PM

    Don't beg from these arrogant fellows. Talk to Japan, Europe, India and other nations instead.

    Udaya Wednesday, 02 November 2016 02:07 PM

    Well said . FM The Chinese are supposed to be investing in Hamba. What happened to the West .

    ET Wednesday, 02 November 2016 02:11 PM

    Chineese ambassador should have been more diplomatic. Is he playing his cards for MR?

    Suren Wednesday, 02 November 2016 02:40 PM

    It is because he lacks basic intelligence and diplomatic skills.

    kan Wednesday, 02 November 2016 02:43 PM

    it it is so, then where the balance 4-5% on interest going?

    BuffaloaCitizen Wednesday, 02 November 2016 02:44 PM

    Pocket money for MaRa was 5%.

    Martin Milton Wednesday, 02 November 2016 03:05 PM

    It is extremely sad to see Sri Lanka being humiliated again and again by the likes of this FM and Foreign Minister.Very well said His Excellency Yi Xiangliang! This is the obvious result when most unsuitable and utterly ignorant anti national persons are appointed to these very important Ministries. FM would be well advised (along with Foreign Min) to take heed and learn from the likes of HE the Ambassador to PRC!!. MM

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