China defends loans offered to Sri Lanka

By Easwaran Rutnam

China has defended the loans it has offered to Sri Lanka following concerns raised by the United States.

Chinese Foreign Ministry spokesman Zhao Lijian said that the cooperation between Sri Lanka and China has always followed the principle of being Sri Lanka-led.

“All cooperation projects have gone through scientific planning and thorough assessment and are never attached with any political strings. The cooperation has contributed to Sri Lanka’s economy and brought tangible benefits to the Sri Lankan people,” he said.

The Chinese Foreign Ministry spokesman said that Sri Lanka’s foreign debt is made up of multiple components.

He said the share of China-related debts is far lower than that of the international capital market and multilateral development banks.

Besides, he says China mostly extends to Sri Lanka preferential loans with low interest rates and long-term maturity, which have helped improve Sri Lanka’s infrastructure and livelihood.

“Shortly after Sri Lanka’s announcement to suspend international debt payments, Chinese financial institutions reached out to the Sri Lankan side and shown full readiness to find a proper way to handle the matured debts concerning China and help Sri Lanka to overcome the difficulties,” the spokesman said.

The Chinese spokesman also said that the global economic and financial markets have suffered enormously as a result of the US’s recent sudden interest rate hike and balance sheet reduction.

He says this has rapidly siphoned off dollars on top of the US’s long-running quantitative easing policy and irresponsible massive stimulus.

“The US’s wayward unilateral sanctions and tariff barriers have undermined the security of global supply and industrial chains, and worsened the price surge of energy, food and other bulk commodities. This has further aggravated the economic and financial condition of developing countries including Sri Lanka. US and other Western capital speculation in Sri Lanka and manipulation of the credit rating of the country seriously undermined Sri Lanka’s financing credibility and channels,” he added.

The Chinese official said that the US should ask itself what it has done for the sustainable development of developing countries like Sri Lanka.

“We hope the US will genuinely help Sri Lanka overcome the current difficulties, ease debt burden and realize sustainable development, instead of unscrupulously latching onto every opportunity to shift the blame, smear other countries and advance geopolitical contests,” he added. (Colombo Gazette)

4 COMMENTS

  1. The western powers wouldn’t tell the truth about why Sri Lanka is in trouble but used every opportunity to bash China.

    The Sri Lankan politicians use religion and language to come to power and let the people indulge their laziness in the name of religion. Basically, leaders have been running the country by taking out loans and allowing the people to indulge in their laziness to get votes. It’s a completely useless system, the western powers deliberately introduced it to undermine billions of people to dominate the world. This system would work in western countries with a lot of natural resources or technical skills. Remember that North America and Australasia were invaded on genocide to possess enormous resources. South Asia does not have huge natural resources; if South Asia had resources, Britain would not have allowed South Asians to be independent. Europeans make money from their technical skills. But South Asians are not as advanced as Europeans to use technical skills to make money. Thus, South Asia should change its system and use its largest human resources to obtain foreign investment based on cost-effective production in the manufacturing and agricultural sectors.

    The people indulge in their laziness in the name of religion and democracy; at the same time enjoying human biology and increasing the population. An uncontrollable population puts pressure on limited resources; this creates internal rifts and makes it easier for the foreign powers to influence. China should teach the Sri Lankan people how to catch fish instead of feeding them. China should not encourage South Asian leaders to use religion and language to gain power, and the people should not indulge in laziness in the name of religion and should not increase their population while borrowing money to eat.

    Before the western invasion, the Sri Lankan kings ruled the country self-sufficiently. After independence, the Sri Lankan leaders should have followed the old Kings’ governing system to govern the country. Obviously, the foreign powers would do everything to make sure that you are depending on them. If the other countries do not buy tea or rubber, you cannot make money. Those Kings knew how to govern the country to be self-sufficient. The western powers removed the talented kings, robbed the country then introduced a political system to keep the uninformed and inexperienced leaders in power. After the independence, they changed the country’s name but they were not wise enough to change the political system.

    Then they brought Sinhala only and pushed aside the minority races. This led to Asia’s longest brutal civil war for decades which took the biggest part of the country’s budget. In fact, India created terrorism in Sri Lanka and eliminated talented leaders to keep the Tamil armed groups under New Delhi. Later on, the western powers hijacked Tamil armed groups from India and prolonged the civil war to achieve their ulterior motives in the Indian Ocean by pushing the LTTE against the Indo-Lanka agreement and Norway-led peace agreement through the Tamil diaspora leaders. India and the western powers eliminated talented leaders by supporting the LTTE. Now Sri Lanka has worse leaders who have destroyed the agriculture sector, including tea exports. Those wise kings never relied on tea or rubber exports. But the current leaders cannot even secure tea exports which were introduced by the western powers. This shows how much the western powers have achieved in developing countries through their political system and supporting terrorism to dominate the world.
    China didn’t make Sri Lanka, Nepal and Pakistan poor in the first place. The western system did it with the support of India. Those South Asian countries were poor; that is why they needed loans from China. Basically, India supported the system to please the western powers. Now South Asian countries are begging the world to eat.

    In South Asia, people are getting used to the concept that having corrupt and foolish politicians is part of democracy. Simply, they have no idea how they have been tricked by the western powers. Lack of knowledge and self-centred politicians make the western powers succeed. The average person does not know how much western countries have stolen from the world, especially from South Asia. They do not know anything about the British colonies’ invasions on genocides in North America and Australasia to steal those continents’ resources. Through a selective educational system, the western powers have been keeping the world’s majority in the dark for generations to rule over them. Especially, covering up their atrocities to occupy the moral high ground to create divisions among the world’s majority, especially through democracy and human rights.

    We cannot reverse those wrong beliefs in months or years. It will take decades. I can only try to change their mindset but I am well aware they would not change. Because they are under the firm grip of India and its western masters. One thing they should not forget, their country and region will continue to struggle with poverty and divisions because they don’t value politically well-informed South Asians.

  2. Impossible to become a stable country, if you show your heads to China, tails to America and foot to Indians. Ranil Wickremesinghe wasn’t elected by the people. He was appointed as a Prime Minister by the Rajapaksas and appointed by India as a President by bribing the politicians. The intellectual community would not support the foreign powers or Rajapaksas. I am not a puppet of China. I have some ideas which may sound like China’s ideas but it came from Lenin. He was a Russian revolutionary, politician, and political theorist. He served as the first and founding head of government of Soviet Russia from 1917 to 1924.

    Sri Lanka is a dangerous playground of the foreign powers. Wait and see Ranil Wickremesinghe’s fate. If he leans too much either side, he is gone. However, he can’t carry on forever without choosing the western powers or the Rajapaksas. Remember, Easter Sunday bombings, the dark forces will destroy you into pieces.

    I have lived in Sri Lanka between 2015 and 2017. This is what the good governance government under Ranil Wickremesinghe did to me.

    I thought I would be safe under Ranil Wickremesinghe who has a law degree. But the reality was far from it. Literally, it was impossible to sleep peacefully even one night. Thugs(western and Indian puppets) or police (bribed by thugs) were constantly knocking my front door. Sometimes middle of the night, sometimes 4 o’clock in the morning. Thugs were threatening me to kill me. But the Police will come and say ‘we have a complaint about you.’ While I was in Sri Lanka I taught English voluntarily. It was very difficult because I wasn’t getting enough sleep. The foolish leaders have failed to secure the country. It has become a playground of the foreign powers. This is the outcome of non alliance.

    In 2015, Sri Lankans laughed at me during my speech for the position of Vice Chancellor at the University of Colombo. I gave a speech on how I intend to raise the standard of Colombo University by collaborating with the National University of Singapore (NUS). During my speech they shouted at me ‘this is Sri Lanka not Singapore.’ In 2017, a foreign puppet who didn’t even pass high school sprayed pepper spray into my eyes and robbed my laptop, Australian passport, and smart phone. I have a witness, I identified the culprit and lodged six complaints with the Sri Lankan police, but the police did nothing. Not a single Sri Lankan media reported the incident.

    • I supported the good governance government but Ranil blocked me from his Facebook account. Then I supported Gotabaya Rajapaksa, he also blocked me from his Facebook. Ranil, Gota, Sumanthiran have blocked me from their Facebook. This year Gotatabaya Rajapaksa blocked me from his Facebook after I mentioned that banning chemical fertilizer is not a wise move without having enough organic fertilizer and adequate training for farmers. I also wrote them to run both farming parallel, the first year 10% organic and 90% chemical, the second year 20% organic and 80% chemicals and so forth. I told them to have a ten years plan to establish organic farming, but they didn’t like it. The Sri Lankan politicians and media do not value intellectuals due to lack of knowledge. This is why it has waged Asia’s longest brutal civil war for decades and currently became the first bankrupt country in Asia.

  3. The loans are not the problem China, allowing politicians to take massive kickbacks is!

    You failed to give loans that go only to intended projects and not projects that are drastically overpriced from the actual cost.
    This only hurts the citizenry of Sri Lanka.

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