Skip to content
Search

Latest Stories

China says its massive loans, projects did not push Sri Lanka to bankruptcy

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.

China says its massive loans, projects did not push Sri Lanka to bankruptcy

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, have 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.

(PTI)

More For You

Former police officer arrested in Rotherham investigation

Investigators believe the earlier offences happened between 1995 and 2002 (Photo for representation: iStock)

Former police officer arrested in Rotherham investigation

A FORMER police officer has been arrested in connection with the ongoing investigation into child sexual abuse in Rotherham, authorities revealed on Tuesday (1).

The former constable, who is in his 50s, was taken into custody on Monday (31). He is suspected of raping a teenage girl in the South Yorkshire town in 2004, according to officials.

Keep ReadingShow less
Modi Xi

Narendra Modi and Xi Jinping during their meeting in October 2024.

75 years of India-China relations: Modi, Xi call for stronger ties

INDIAN prime minister Narendra Modi and Chinese president Xi Jinping exchanged messages on Tuesday to mark the 75th anniversary of India-China diplomatic relations.

Modi stated that the development of bilateral ties contributes to global stability and a multipolar world, while Xi called for a "dragon-elephant tango" to strengthen cooperation between the two countries, China's state-run Xinhua news agency reported.

Keep ReadingShow less
Sri Lanka forms committee to address UK sanctions
Anura Kumara Dissanayake

Sri Lanka forms committee to address UK sanctions

THE Sri Lanka government on Wednesday (2) formed a committee to recommend measures regarding the UK's decision to impose sanctions on three former military commanders who led the campaign that crushed the Liberation Tigers of Tamil Eelam (LTTE) in 2009.

Health minister Nalinda Jayatissa told reporters that foreign minister Vijitha Herath, justice minister Harshana Nanayakkara and deputy minister of defence Aruna Jayasekara would comprise the committee that would consult experts for the purpose.

Keep ReadingShow less
Gujarat-blast-ANI

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed. (Photo: ANI)

ANI

Death toll rises to 21 in Gujarat firework factory explosion

AN EXPLOSION at an illegal firecracker factory in Gujarat's Deesa town killed 21 people and injured several others on Tuesday, officials said.

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed.

Keep ReadingShow less
Child benefit payments set to rise for UK families

Child benefit, normally paid every four weeks directly into bank accounts, has undergone significant changes in recent months (Photo: Getty Images)

Child benefit payments set to rise for UK families

MILLIONS of British families are set to receive a financial boost as child benefit payments increase from April 7, according to HM Revenue and Customs (HMRC).

From next week, parents will receive £26.05 per week for the eldest or only child, amounting to £1,354.60 annually - up from the current rate of £25.60. For each additional child, payments will rise to £17.25 weekly, totalling £897 per year - an increase from the present £16.95 rate. This represents a 1.7 per cent increase across all payment categories.

Keep ReadingShow less