China didn’t put SL into a debt trap: Envoy
Posted on October 5th, 2018

Courtesy The Daily Mirror

The Chinese Government did not get Sri Lanka into a debt trap by lending money to it,” Sri Lankan Ambassador to China Karunasena Kodituwakku has said.

If anybody is saying that the Chinese government lent money to us to put Sri Lanka into a debt trap, I don’t agree with that statement. It’s an absolutely wrong conclusion,” Kodituwakku told CGTN’s “The Point”.

He said the Chinese government assisted Sri Lanka to build the Hambantota project and that it was up to the Government of Sri Lanka to decide whether to build on the basis of feasibility studies, then to make business decisions.

“Of course, we have difficulties in paying back the loan, however the Chinese government never asked us to hand the Port over to them or to the Chinese venture in question. It was a proposal that came from Sri Lanka, asking to enter into a partnership with China,” he added.

As a response to media concerns that China is ‘militarising’ the Port, Kodituwakku pointed out that “in Sri Lanka’s case from the very beginning we very clearly indicated to the Chinese side that it was only an economic venture.”

He said Sri Lanka does not allow anybody to interfere with the security of Sri Lanka.We took a decision to shift a naval base to Hambantota Port in July, Kodituwakku explained, adding The security of the Hambantota Port, the territorial integrity of Sri Lanka in the Indian Ocean, is entirely a matter for the Sri Lankan security forces to worry about. China never asks us to compromise on this aspect.”

Kodituwakku said he remains optimistic over the long-term prospects of the Port and the future of Sri Lanka’s role in an emerging Asia.

2 Responses to “China didn’t put SL into a debt trap: Envoy”

  1. Dilrook Says:

    True.

    All Chinese loans are backed by assets and overall they make profit.

    It was too much borrowed funds (85% from 2009 to 2013) wasted in the north and east that landed us in the debt trap. These investments don’t produce a sufficient return for the government (emphasis). Ultimately the government must have money to repay loans. No point people having money. To repay foreign loans, the government must have more foreign currency. None of this happened by wasting money in the north and east.

  2. Randeniyage Says:

    It is not the fault of Chinese government. They didn’t force us, we gladly accepted their loans.
    Whether it is Chinese loans or Japanese loans or ADB loans, these borrowed money shall be invested carefully increase productivity.
    There should be a proper plan to increase productivity by making money from the investments made from that borrowed funds.
    Other than Sri Lanka there are very similar economies doing the same thing. If you take Indonesia they have the same per capita GDP as us, and even more corrupt politicians and officials. All the borrowed money is wasted.

    If you compare the local currency drop this year, both countries lost the value by 11-12 % this year.

    This problem can never be solved without eradicating corruption and having expert management of the economy. There is absolutely NO ONE in either camp for politicians who can be entrusted to do that.

Leave a Reply

You must be logged in to post a comment.

 

 


Copyright © 2020 LankaWeb.com. All Rights Reserved. Powered by Wordpress