Sri Lanka gets US$2.5bn dollars in China financing

[Sashan]

Sri Lanka has notched up 2.53 billion US dollars in funding from China, since 2007 and 1,205 billion US dollars already disbursed into roads, power, ports and airports, a finance ministry report said.

In 2011 China has committed 785 million US dollars in new financing, up from 635 million US dollars in 2010. China has committed about 2.1 billion US dollars in loans and 24 million dollars in grants.
The Export Import Bank of China was the top lender followed by China Development Bank and the Industrial and Commercial Bank of China, the finance ministry's annual report said. Grants and interest free loans are given by the Chinese government.

China had financed 1.46 billion US dollars of roads and bridges, including in the former war torn northern areas, which was 58 percent of the funding. Power and energy had received 20 percent and ports and airports 17 percent.

About 400 million dollars were categorized 'concessional loans' denominated in Renminbi. Of this 190 million US dollars were taken by Airport and Aviation Services Sri Lanka Ltd, under a Treasury guarantee.

The Renminbi is an appreciating currency against the US dollar.

Another 891 million US dollars came as 'preferential buyer's credit'. It was received by Lanka Coal Company Ltd, under Treasury guarantee.

Sri Lanka's Ceylon Electricity Board built its first 300 MegaWatt coal plant with Chinese financing and the construction of the balance 600MW is now underway.
Key Chinese financed projects included a 360.8 million dollar port in Hambantota in the South which was financed with a 306.7 million dollar loan from the Exim Bank of China.

The Exim Bank is also financing a 25.8 million kilometer expressway to the capital from the main airport Last year 53 million Us dollars had been disbursed for the airport road, 91 million US dollars for roads in the north of the island.

China is also financing an airport in Mattala in the South. China financed projects are mainly built by Chinese contractors sometimes on a turnkey basis and are quickly completed.

In 2009 and 2010 China had a utilization rate of 38.3 percent and 46.7 percent, compared with an average rate of 25.7 percent for all projects. In 2011 the utilization rate dropped to 18.5 percent amid an average fall to 21.8 percent.

Over the last five years China has emerged as the top source of new loans.

Sri Lanka gets US$2.5bn dollars in China financing - LANKA BUSINESS ONLINE
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SL government will allow Chinese Naval base for sure!

Personally I want SL government to allow Chinese Naval base. It will be a decisive change in the foreign policy of India with respect to SL. India has for long sacrificed the interests of many citizens/non-citizens who are/can be more patriotic than many living in India due to the geo politics.

1. In Assam and Bengal illegal Bangladesh immigrants changing the demographics of certain regions and India keeping quiet as a policy of appeasement
2. Kashmiri Pandits thrown out of Kashmir and India has more or less forgotten about this as they do not want to add to the dissatification of the separatists.
3. India illegally handing over Katchatheevu without the ratification of two houses of parliament and some Indian official deeming it illegal for TN fishermen to fish near Katchatheevu and Tamilnadu fishermen getting killed/arrested by SL Navy and Indian government not doing a squat lest it will offend SL.


If SL provides the naval base to China, it will ruffle some feathers within India and this will speed up the case in Supreme court regarding Katchatheevu and it will be a favourable response. At that point, the government will be forced to act to recover Katchatheevu. SL, on the other hand, will be forced to oppose it and the situation developing will be very interesting. And we know the outcome. SL populace will be forced to question the judgement of SL government in allowing a naval base and India will stop appeasing the SL anymore in future and will act with a firm hand wrt SL.

 

[Skyline]

Personally I want SL government to allow Chinese Naval base. It will be a decisive change in the foreign policy of India with respect to SL. India has for long sacrificed the interests of many citizens/non-citizens who are/can be more patriotic than many living in India due to the geo politics.

1. In Assam and Bengal illegal Bangladesh immigrants changing the demographics of certain regions and India keeping quiet as a policy of appeasement
2. Kashmiri Pandits thrown out of Kashmir and India has more or less forgotten about this as they do not want to add to the dissatification with the separatists.
3. India illegally handing over Katchatheevu without the ratification of two houses of parliament and some Indian official deeming it illegal for TN fishermen to fish near Katchatheevu and Tamilnadu fishermen getting killed/arrested by SL Navy and Indian government not doing a squat lest it will offend SL.


If SL provides the naval base to China, it will ruffle some feathers within India and this will speed up the case in Supreme court regarding Katchatheevu and it will be a favourable response. At that point, the government will be forced to act to recover Katchatheevu. SL, on the other hand, will be forced to oppose it and the situation developing will be very interesting. And we know the outcome. SL populace will be forced to question the judgement of SL government in allowing a naval base and India will stop appeasing the SL anymore in future and will act with a firm hand wrt SL.

Who cares Indian court orders? We are Sri Lankans and our law in our waters!

 

[Sashan]

Who cares Indian court orders? We are Sri Lankans and our law in our waters!

Indian court does not control SL. But it controls Indian government and Indian army,navy and airforce else the government will be held in contempt. Not to mention the Indian voters' sentiments which no government can ignore nor any political party can ignore unless it wants to be called a traitor.

 

[COLDHEARTED AVIATOR]

Who cares Indian court orders? We are Sri Lankans and our law in our waters!

Hope you know that SL water is 12 nautical miles from the SL coast.

 

[Sashan]

And Indian politicians are votebank greedy. They would do anything to appease the voters and Indians are fiercely patriotic when it comes to protecting the lands(which is the reason no politician has decisively gone for a border settlement with other countries)

 

[Skyline]

Indian court does not control SL. But it controls Indian government and Indian army,navy and airforce else the government will be held in contempt. Not to mention the Indian voters' sentiments which no government can ignore nor any political party can ignore unless it wants to be called a traitor.

Indian court is hilarious! CM seems never heard about International laws.

 

[Sashan]

Indian court is hilarious! CM seems never heard about International laws.

Indian court rules the roost in India at the end of day. Again border issues are not settled as per international laws. And I would be enlightened if you can give me an example.

 

[Rocky25]

Who cares Indian court orders? We are Sri Lankans and our law in our waters!

So you are also of the opinion that China will come to SL aid in your imaginary war with India? Hum you suffered a hell lot for refilling Pakistani Ships when it was in war with India.

 

[Skyline]

Indian court rules the roost in India at the end of day. Again border issues are not settled as per international laws. And I would be enlightened if you can give me an example.

We don't have dispute border areas, everything is clean around the my country!

 

[Rocky25]

Indian court is hilarious! CM seems never heard about International laws.

International laws does not apply for superpowers! I do not mean India is a super power here! The US won't mind if India prevents China in Indian Ocean waters! SL does not have a navy to break Indian naval blockade if it wishes to!

We don't have dispute border areas, everything is clean around the my country!

We are the giant here! The SL politicians are not fools to mess with India! The Indian government did not have any soft corner for Tamil cause, but that does not mean that India will look in different direction if you allow Chinese in Indian Ocean!

 

[Skyline]

So you are also of the opinion that China will come to SL aid in your imaginary war with India? Hum you suffered a hell lot for refilling Pakistani Ships when it was in war with India.

India is just like a sleeping volcano, when it erupts it destroys its own people. That's all!

I have seen many times on this forum some Indian members are day dreaming about their military power and nukes. It's not easy to use those nuke and stuff in this modern world.

 

[Sashan]

We don't have dispute border areas, everything is clean around the my country!

It maybe as per SL and as I said SL can believe anything. But I suggest that you do not ignore the Indian court ruling as it carries far more ramifications than you imagine. That is the stick which has forced the politicians to act now and then. The most recent one is the cancellation of the 2G licenses where many foreign companies lost their money and Indian government nor any of the foreign countries could do a squat against the cancellation.

India is just like a sleeping volcano, when it erupts it destroys its own people. That's all!

I have seen many times on this forum some Indian members are day dreaming about their military power and nukes. It's not easy to use those nuke and stuff in this modern world.

I would not suggest the use of nukes. But Indian navy has enough might to offset any aggression of foreign powers in its neighbourhood.

Beyond that, the discussions now are degenerating into a fanboy contest and I hate discussing a topic in a subjective manner.

 

[Skyline]

We are the giant here! The SL politicians are not fools to mess with India! The Indian government did not have any soft corner for Tamil cause, but that does not mean that India will look in different direction if you allow Chinese in Indian Ocean!

why should we care about India?
China is the next superpower in this world, so keeping strong relationship such a country is benefit to SL.

It maybe as per SL and as I said SL can believe anything. But I suggest that you do not ignore the Indian court ruling as it carries far more ramifications than you imagine. That is the stick which has forced the politicians to act now and then. The most recent one is the cancellation of the 2G licenses where many foreign companies lost their money and Indian government nor any of the foreign countries could do a squat against the cancellation.



.

border disputes are not like business agreements! so your Indian court has given any court orders regarding border issues which you have with your neighboring countries?

 

[Rajaraja Chola]

why should we care about India?
China is the next superpower in this world, so keeping strong relationship such a country is benefit to SL.



border disputes are not like business agreements! so your Indian court has given any court orders regarding border issues which you have with your neighboring countries?

How can u guys not care about india? This is hilarious !! Ur country is less than 50 km from India.. U bring in a security threat, and we respond correspondingly...

 

[Rocky25]

India is just like a sleeping volcano, when it erupts it destroys its own people. That's all!

I have seen many times on this forum some Indian members are day dreaming about their military power and nukes. It's not easy to use those nuke and stuff in this modern world.

Does India need Nukes against SL, You are making me laugh like crazy! I would stop here, I am arguing with a kid!