China wants unsolved issues on Port City project to be resolved
Posted on April 12th, 2016
Courtesy adaderana
The Chinese Government hopes some unsolved issues on the Port City project will be resolved soon in a bid to pave the way for the resumption of the project.
As you have noted, the Sri Lankan cabinet has recently approved the environment evaluation report of the Colombo port city project, basically clearing the way for resuming the project. We also hope that the two sides will maintain communication and reach agreement on unsolved issues at an early date to pave the way for the resumption of the project,” China Foreign Ministry Spokesperson Lu Kang said.
He also added the cooperation between China and Sri Lanka has always been based on equality, mutual benefit and win-win situation. We also believe that the Sri Lankan side will actively discuss with the Chinese side on how to deepen pragmatic cooperation based on its own needs of social and economic development.
China and Sri Lanka released a joint statement when Sri Lankan Prime Minister visited China. The two countries agree that relevant maritime issues should be properly resolved by parties concerned through friendly negotiation and constructive dialogue.
This is in line with China’s consistent policy and position. As you know, for issues that are in their nature sovereignty and maritime rights and interests disputes such as the South China Sea issue, certain country’s attempt to solve it through forceful arbitration is not helpful to regional peace and stability nor international practices in the long run. Therefore, China is strongly opposed to that.
During Sri Lankan Prime Minister’s visit to China, the two sides had an in-depth discussion on how to expand mutual cooperation including trade and investment cooperation following the principles of equality and mutual benefit. The Sri Lankan side did express their welcome to Chinese companies to extend their investment in various fields including infrastructure in Sri Lanka, and the two sides are also exploring specific ways of cooperation. Specific information will be released timely if there is any,” he added.
April 13th, 2016 at 12:10 am
In another unprecendented move Sri Lanka plans to raise Yuan bonds in China. Whoever does it, a bold move and makes sense in the short run at least. Borrowing in USD to pay China is a joke. It releases Sri Lanka from China but indebts to USA or the EU. Borrowing from China to repay China makes more sense.
However, it still creates a loss. Chinese government lent us at rates lower than 5%. Now Sri Lanka plans to issue Yuan bonds at 5% for 10 years. That itself is a loss. An expensive new loan to repay a loan. Although yuan rates are lower than USD rates as Mahendran says, Chinese Yuan had appreciated 2% over the past 10 years over the USD. If the trend continues the real interest rate we pay will be 7%; much higher than now.
This cost can be reduced by following other Chinese dictates. For instance, China wants Sri Lanka to give the Yuan the same status as the USD. If we do that, Sri Lanka will have enough Yuan to repay the loan. At yuan rates without converting from USD, it is beneficial.
In other words, China has trapped Sri Lanka to its economic ambit. For Sri Lanka to repay at a lower cost, it must trade in yuan. For that to happen, Sri Lanka will have to sign the delayed FTA with China to increase trade which will replace USA and India with China as Sri Lanka’s largest trading partner. If not, Sri Lanka will have to repay more to settle yuan bonds from its USD earnings. Third possibility is once again Sri Lanka will go with the begging bowl to China to get new loans to settle old loans. That too benefits China. Whatever the outcome, China benefits.
April 13th, 2016 at 2:49 am
These recent moves creates another danger for Sinhalese.
It is well know that MR was ousted by secret support given by USA + India.
What will they do now ? Surely they don’t like this.
They will try to get MR to agree to some dangerous conditions with promise of no UN prosecution.
They will put this new MR&CO in power. Elam will be accelerated.
April 13th, 2016 at 8:34 am
Dear friends,MR is not a bloody fool and a half to get trapped into US and Western jimiks like BATALANDA KILLER RANIL WICKREMASINGHA & UNGREATFUL GRAMASEVAKA WAIRAALA SIRA WHO HAS NO BRAINS TO THINK WISELY WHO BLATANTLY AGGREED TO WESTERN COUP OF SLFP & UNP PARTNERSHIP AT THE PRESIDENTIAL ELECTIONS TO DEFEAT MR THE GREAT WHO ERADICATED LTTE MURDERERS FROM SRI LANKAN SOIL AND AVED THE WAY FOR ALL TO LIVE IN PEACE. OUR MODA SINGHALAYAS TOO GULPED PIL & VOTED FOR MARU SIRA & BATALANDA MINEEMARUWA WAS MADE THE PRIME MINISTER ILLEGALLY WHERE IN NO OTHER COUNTRY HAS HAPPENED SUCH AN ACT BY A RPESIDENT, BY OUSTING THE DEMOCRATICALLY ELECTED PM.
Now the Sri Lankans are facing the results of that with HIGH COST OF LIVING Etc,Etc,!
ULTIMATELY,SINCE THE WESTERN COUNTRIES NEVER CAME FOR BATALANDA MINEEMARUWA & MARU SIRA,RW WAS COMPELLED TO GO TO CHINA WITH A BEGGING BOWL & GOT BACK THE CORRECT TREATMENT.RW THE BATALANDA MAN WAS ORDERED BY CHINA TO RESTART THE MR INITIATED ROJECTS WITH CHINESE HELP WHICH WERE FOOLISHLY STOPED BY THIS FOOL RW,NAMELY,HAMBANTOTA 1000 ACRE DEVELOPMENT PROJECT,MATTALA AIRPORT PROJECT,COLOMBO PORT CITY RPJECTS.
WHAT A SHME TO THESE FOOLS MARU SURA & BATALANDA RW???????????????????????????????????????
April 13th, 2016 at 5:52 pm
The only way we the Sinhalese can stand up to Indian imperialism and Indian colonial parasites is by cooperating with countries like China and Pakistan. Otherwise we will end up like Sikkim and Nepal.
To this end we have to boycott Indian goods and businesses run by Indian colonial parasites and we have to unite.
April 13th, 2016 at 7:02 pm
Jay-ran,
Agree on Batalanda man and Big liar My3. These are know betrayers.
MR is no fool but too greedy. His and his family is bigger than the country for him. Tell me just one sacrifice he made !
When under threat of prosecution, I don’t trust him too. This happened numerous times in the past. Therefore it is important to get assurance from him this time. But he is avoiding it. He will not hesitate to give Ealam in my view.