China says its loans, projects boosted SL’s economy

29 July 2022 01:28 pm - 26 - {{hitsCtrl.values.hits}}

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China on Thursday defended its massive infrastructure ventures and investments in crisis-hit Sri Lanka and said that they have "boosted" its economic development, amid criticism from the US of Beijing's unproductive projects and opaque loan deals among the reasons for the country's bankruptcy.

"The China-Sri Lanka practical cooperation has always been led by Sri Lanka with scientific planning and thorough verification with no strings attached," Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here.

"Chinese projects have boosted Sri Lanka's economic development, and brought tangible benefits to the Sri Lankan people," he said while responding to a question on the criticism of China's projects and policies towards Sri Lanka by the USAID administrator Samantha Power.

Speaking in New Delhi on Wednesday, Power said India reacted "really swiftly" with an absolutely critical set of measures to help Sri Lanka tide over its economic crisis, but calls to China to provide significant relief have gone unanswered.

Power said China became one of Sri Lanka's "biggest creditors" offering often "opaque loan" deals at higher interest rates than other lenders and wondered whether Beijing would restructure the debt to help the island nation.

Refuting her allegations, Zhao said "there are multiple components to Sri Lanka's foreign debt, where China-related debts take far less share than the international capital market and multilateral development banks."

"Besides what China provides for Sri Lanka almost preferential loans with low-interest rates and long terms, which have played a positive part in improving Sri Lanka's infrastructure and livelihood," he said.

China's unproductive projects in Sri Lanka, including the Hambantota port, which Beijing took over on a 99-year lease as a debt swap, has come under sharp criticism.

The unprecedented economic crisis faced by Sri Lanka has led to severe shortages of fuel, cooking gas and medicine and long lines for essential supplies, which led to massive anti-government protests and the ouster of President Gotabaya Rajapaksa this month.

China, which accounts for 10 per cent of Sri Lanka's debt, is reported to have resisted offering a debt cut.

He also sought to blame the US policies including the interest rate hikes, unilateral sanctions and massive stimulus policies which had seriously impacted many developing countries like Sri Lanka.

"I want to stress that the global economic and financial markets have taken a heavy toll as the US's recent sudden interest rate hikes and balance sheet reduction has siphoned off dollars more rapidly, reverse from the long-running quantitative easing policy and irresponsible massive stimulus," he said.

Without referring to the Russia-Ukraine war, Zhao also blamed the US sanctions.

"The US's unilateral sanctions and tariff barriers have undermined the security of industrial chains and have worsened the price surge of energy, food and other commodities. This has further aggravated the financial and economic situation of many developing countries,including Sri Lanka," he said.(The Economic Times)

Comments - 26

Tak Tik Tuk Friday, 29 July 2022 01:32 PM

@China - all of your loans were invested in white elephant projects by our donkeys in the parliament

Starving nation Friday, 29 July 2022 01:35 PM

Pl come again you mean loans provided by the China boosted SL's economy or Rajapakshas family development. Our country is bankrupt now but Rajapakshas have developed.

Kikazaru Friday, 29 July 2022 01:37 PM

Yes, all Sri Lankans know how you gave loans to Sri Lanka at high interest rated for unproductive projects. The main reason was for the commissions to your handlers.

kondebandapucheena Friday, 29 July 2022 01:41 PM

Sri Lankan economy=Rajapakse economy. Rajapakses got the money and Sri Lankan people have to pay it back. People of Sri Lanka used to have a good image about China but not anymore.

Jason Friday, 29 July 2022 01:54 PM

Won't be surprised to see a few Sri Lankans agreeing with the Chinese. I have read comments here demeaning India for its help, including jokes about the poverty in our country. And I am not blaming only the Chinese for your situation , but they are the biggest catalyst.

Dharmakulasingham Friday, 29 July 2022 02:07 PM

Absolutely true

Lankan Friday, 29 July 2022 02:11 PM

Thanks and that is well enough please stop further boosting us. And we only know how much boost we got. Please stop playing.

Shocking Friday, 29 July 2022 02:15 PM

Yeah, the Rajapakses are routing the stolen money through China at high interest rates I guess !!

sam Friday, 29 July 2022 02:21 PM

decisions were made on commissions paid to rajapaksa and henchman. china should be prosecuted by the people for bribery.

Ranjith Friday, 29 July 2022 02:30 PM

Ok

Nihal Dharmatileke Friday, 29 July 2022 03:01 PM

Chinese loans ruined our country it’s not China’s fault but Sri Lanken governments Mismanagement and corruption turning a country into a concrete jungle is not development,uplifting the living standards of its people is development non profitable projects; example Lotus tower it’s a decoration nothing else.

Nihal Dharmatileke Friday, 29 July 2022 03:01 PM

Chinese loans ruined our country it’s not China’s fault but Sri Lanken governments Mismanagement and corruption turning a country into a concrete jungle is not development,uplifting the living standards of its people is development non profitable projects; example Lotus tower it’s a decoration nothing else.

Nihal Dharmatileke Friday, 29 July 2022 03:01 PM

Chinese loans ruined our country it’s not China’s fault but Sri Lanken governments Mismanagement and corruption turning a country into a concrete jungle is not development,uplifting the living standards of its people is development non profitable projects; example Lotus tower it’s a decoration nothing else.

Nihal Dharmatileke Friday, 29 July 2022 03:01 PM

Chinese loans ruined our country it’s not China’s fault but Sri Lanken governments Mismanagement and corruption turning a country into a concrete jungle is not development,uplifting the living standards of its people is development non profitable projects; example Lotus tower it’s a decoration nothing else.

Adam Friday, 29 July 2022 03:03 PM

The whole world has witnessed where Sri Lanka is now with the Chinese loans and projects. Pakistan and Bangladesh are next in line to go through the same catastrophe with Chinese loans

ranjit Friday, 29 July 2022 04:40 PM

there are few billionare politicians because of china's loans

Mahesh Friday, 29 July 2022 03:10 PM

Lol. These Chinese loans mainly destroyed Sri Lanakan economy. They gave high intrest loans for useless project that did not give any kind help to improve the economy for general public butof course loans economically helped Rajapaksa theifs and Chinese officers who negotiated the loans.

Nadi Karunaratne Friday, 29 July 2022 03:39 PM

Delusional. We are paying for irrelevant rubbish that generated only commissions. For every bad borrower there is a lousy lender.

Chris Friday, 29 July 2022 03:49 PM

Why the long silence when we were suffering Mr. Zhao? You have become a business partner and India the best friend of SL

Spartacus Friday, 29 July 2022 03:51 PM

Thank you China for boosting our economy with such ultra successful projects, that today we have abundant return from each and everyone of those projects. We clever

Cinthupala Kamalagama Friday, 29 July 2022 04:00 PM

Bullshit! Then how those politicians invested overseas by billions!

European Friday, 29 July 2022 04:16 PM

Not one word about Russia who started the war and is the maincause of this worldwide economic crisis. Do you all have any idea how much Putin spend on this war? We in Europe are very grateful that the USA is such a reliable NATO ally. We don't want to be taken over by Russia or China, like the rest of the world.

Ho lee fuk Friday, 29 July 2022 04:32 PM

Stay in China. Your economy is tanking.

Mangala Friday, 29 July 2022 04:33 PM

Is this Chinese foreign spokesman guy living in this world or somewhere in a parallel universe? Ask him how much the interest is on these loans and how much they bribed the corrupted Rajapaksa regime. Ask him how Hambanthota port and Mattala Ait port contributed to uplifting people's lives. Ask him how Colombo's tallest tower, Hambanthota cricket ground, and conference facilities helped to boost our economy. They did the same thing to some African countries with strong strings for their own benefit. What Samantha Powers said is true.

Kumar Saturday, 30 July 2022 05:26 AM

Like the nelum kuluna or the mira?

Neil Saturday, 30 July 2022 07:16 AM

Please tell me how much is the rate of return. Has a feasibility study been done, based on the investment cost the five years of operation?? Hambantota sea port and airport are white elephants.

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China says its loans, projects boosted SL’s economy

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