Sri Lanka Attempts to Repair Relations With China Amid an Escalating Financial Crisis

[Azizam]

It's futile to post logic.. These people are like frogs in the well.. Have no idea how insignificant they are in global context.. Think they are indispensable because their political masters make them believe it.. Force fed by a stupid education system first and then later by their politicians they cant see beyond their noses.. All they know is to crow about some glorious past and a civilization that nobody else really gives a hoot about now.. Only politicians and radical monks brings these up to work up these morons on pseudo nationalistic fervor to secure some votes, In turn they hero worship those clowns as their saviors

You can see the same trend in certain Indians here.. Third world politics for you

That's very true. I grew up in Sri Lanka so I have an idea about how its educational system works. From an early age we are taught to think that we are the centre of the universe and that "Sri Lankans lived in cities and built lakes when others were wearing leaves as clothes". When I came to the UK, it was quite a cultural shock to find out how irrelevant we are. Unfortunately for most people who grow up in Sri Lanka, this same mentality persists. Now coming back to investments, Sri Lanka is not a super duper country where everyone is bending over backwards to invest. It has to compete with other countries in the region to receive investments. It can't afford to throw away what little opportunities it got like in the case of Port City. Well, if it can't even keep the investments that it got without much competition, how can we expect it to compete with other countries for investments? There are many other countries in the region that offer much better prospects than Sri Lanka. If I am an investor looking to invest in the region, I would definetely not choose a country where my investment gets threatened because of government change.

 

[Godman]

Tell me one white elephant project?



Now everyone has to agree how shrewd MR on the foreign policy and on choosing friends.

UNP had always done short sighted things like these.

The article explains how Chinese loans created financial crisis

Why don't you go Mattala and see your airport

 

[Mamsalaphala]

The article explains how Chinese loans created financial crisis

Why don't you go Mattala and see your airport

Beyond that it creates a system that takes away your freedom and enslave you to chinese wishes. With 95% of your income going to service Chinese debts.

Its a classic debt trap.

 

[Godman]

Beyond that it creates a system that takes away your freedom and enslave you to chinese wishes. With 95% of your income going to service Chinese debts.

Its a classic debt trap.

I don't blame China. When loans are taken the govt should study them and negotiate proper interest rates.

Many people warned about Mattala airport before it was even built and it was the SL govt that chose to build it there. We brought it on ourselves. China didn't really force those loans on us. Millions of loans has to be paid now even though the projects only make losses and only one airline use the airport

And there are many more of those things.
Sri Lanka mulls future of Rajapakse's white elephants | Daily Mail Online

The only useful thing is the Hambantota port but the rest are totally hopless

. It can't afford to throw away what little opportunities it got like in the case of Port City.

Port City should start in less than six months but it will not start until the Megapolis plan is updated by the Singaporean firm. There was a land reclamation project planned in the original Megapolis project and the port city complictaed things.
Now they are trying to harmonize the two projects
Interview: New plans to be unveiled in Megapolis infrastructure | Lanka Business Online

 

[Mamsalaphala]

I don't blame China. When loans are taken the govt should study them and negotiate proper interest rates.

Many people warned about Mattala airport before it was even built and it was the SL govt that chose to build it there. We brought it on ourselves. China didn't really force those loans on us. Millions of loans has to be paid now even though the projects only make losses and only one airline use the airport

And there are many more of those things.

The only useful thing is the Hambantota port but the rest are totally hopless

I don't blame china either. They are looking after their own self interest.

I don't blame the US for bombing middle east for oil either. They do that for their self interest.

The blame is always on the one who made the deal with the devil.

 

[Godman]

I don't blame china either. They are looking after their own self interest.

I don't blame the US for bombing middle east for oil either. They do that for their self interest.

The blame is always on the one who made the deal with the devil.

Well China was looking for a deal that is advantageous for themselves and SL just gave it.
The SL leaders only wanted to show off by building things useful or not

Sri Lanka currently has many economic problems thanks to bad economic policies of the past and thats not the fault of China alone.
for example the Sri Lankan airlines which was a profitable joint venture with the Emirates Group but after it was nationalized the president appointed his Bro-in-law and soon it started making millions of dollars of losses and lots of unqualified appointments were made. Now its the SL govt that has deal with it

 

[Archie]

And the string of pearls tighten around Indias neck. Soon she will breath her last!

Please explain what is this string of pearls

Bangladesh is a virtual Indian Stooge
Myanmar allows us to conduct strikes within their country
Maldives know that no one accept India will help them when Indian ocean swallows their nation.
Sri Lanka has just realized the folly of too much financial dependence on Chinese loan
They are now in worst financial situation than Zardari's Pakistan

 

[Gibbs]

That's very true. I grew up in Sri Lanka so I have an idea about how its educational system works. From an early age we are taught to think that we are the centre of the universe and that "Sri Lankans lived in cities and built lakes when others were wearing leaves as clothes". When I came to the UK, it was quite a cultural shock to find out how irrelevant we are. Unfortunately for most people who grow up in Sri Lanka, this same mentality persists. Now coming back to investments, Sri Lanka is not a super duper country where everyone is bending over backwards to invest. It has to compete with other countries in the region to receive investments. It can't afford to throw away what little opportunities it got like in the case of Port City. Well, if it can't even keep the investments that it got without much competition, how can we expect it to compete with other countries for investments? There are many other countries in the region that offer much better prospects than Sri Lanka. If I am an investor looking to invest in the region, I would definetely not choose a country where my investment gets threatened because of government change.

Agree word for word

 

[Shotgunner51]

That said.. Chinese also need to be more sensitive to domestic political compulsions in sovereign nations.. Putting all their eggs in to one basket case does not help their policies either, In most cases those basket cases are tin pot dictators abusing the good will of Chinese developments for their own corrupt agenda.. As in the case of Sri Lanka.. Democracy is fluid, China needs to make point of it

Very well said and good advice, absolutely agree with you. Indeed that's a learning curve for China to understand on the dynamics of SL domestic politics, and its influence on investment. Well it does take sometime!

On the external debts, since the absolute amount combined (~$70B) is not too big I believe these debts can be restructured without much problem, let's not worry about that. The top agenda is those work-in-progress be turned into revenue generating assets, ASAP!

 

[Azizam]

I don't blame China. When loans are taken the govt should study them and negotiate proper interest rates.

Many people warned about Mattala airport before it was even built and it was the SL govt that chose to build it there. We brought it on ourselves. China didn't really force those loans on us. Millions of loans has to be paid now even though the projects only make losses and only one airline use the airport

And there are many more of those things.
Sri Lanka mulls future of Rajapakse's white elephants | Daily Mail Online

The only useful thing is the Hambantota port but the rest are totally hopless



Port City should start in less than six months but it will not start until the Megapolis plan is updated by the Singaporean firm. There was a land reclamation project planned in the original Megapolis project and the port city complictaed things.
Now they are trying to harmonize the two projects
Interview: New plans to be unveiled in Megapolis infrastructure | Lanka Business Online

There is no guarantee that port city would start. Just news articles once in a while are not a reliable source to make a judgement. We are talking about investor's perspective here. The Chinese company is making huge losses thanks to the retarded decisions of the government. Who else is willing to go on the same path and invest huge amounts of money in Sri Lanka when there are MUCH BETTER alternatives that offer stability and guarantee?

 

[Gibbs]

Very well said and good advice, absolutely agree with you. Indeed that's a learning curve for China to understand on the dynamics of SL domestic politics, and its influence on investment. Well it does take sometime!

On the external debts, since the absolute amount combined (~$70B) is not too big I believe these debts can be restructured without much problem, let's not worry about that. The top agenda is those work-in-progress be turned into revenue generating assets, ASAP!

This current govt should have been more prudent with China mate.. Sino/Lanka relationship is steadfast and i think they made a major blunder in the first few months overlooking it somewhat in order to rebalance the foreign policy

But glad they seem to be attempting to calibrate the policy.

And yes for what ever motive those projects were done on the behest of the former regime those investments need to be turned in to revenue producing assets

 

[cirr]

Now it is opportune time for India to come out in support of Sri Lanka with interest-free loans worth tens of billion dollars。

Go India，go！

 

[RisingShiningSuperpower]

Now it is opportune time for India to come out in support of Sri Lanka with interest-free loans worth tens of billion dollars。

Go India，go！

You are very true! India should pay off the debts Sri Lanks owes. $70 billion is a small amount for a country that will become a superpower by 2020.

 

[Mamsalaphala]

Now it is opportune time for India to come out in support of Sri Lanka with interest-free loans worth tens of billion dollars。

Go India，go！

Is it not easier to ask SL NOT to pay the debt and promise to support them ?

I don't see why the Sri Lankans have to pay interest and penalty to the Chinese when there is evidence that they has bribed the SL govt. to take massive loan's on unviable projects. This loan burden need not be paid and must be renegotiated to waive off interest as ANY other bad loan in the world.

No need for SL to be indebted to the chinese for no fault of theirs. China was an equal partner in corruption. so why should Sri Lankans be the ONLY one to pay for it ?

Be careful what you wish for.

 

[Mamsalaphala]

Sri Lanka in Chinese debt trap

The amount of loans China has made available to Sri Lanka during the last four years has exceeded US$3836. Sri Lanka has to settle this colossal debt during the next 14 to 20 years with an interest of 1.53% to 6.5%.

Before Mr. Mahinda Rajapaksa came to power the economic relations between China and Sri Lanka were not harmful to Sri Lanka. An example is the ‘Rubber – Rice’ agreement between Sri Lanka and China.

However, the present government has signed various agreements with China to obtain colossal amounts in loans entrapping Sri Lanka in a debt trap.

Political analysts point out such a situation is a threat to regional politics.

You are very true! India should pay off the debts Sri Lanks owes. $70 billion is a small amount for a country that will become a superpower by 2020.

That is illogical.

It is far better to refuse to pay the debt and bring china down to the negotiating table and demand partial or total waiver for indulging in corruption.