Sri Lanka softens its stance on China port city deal

[Cortana]

(Reuters) - Sri Lanka's new government said on Thursday it might renegotiate a $1.5 billion "port city" deal with China Communications Construction Co Ltd (601800.SS), softening its pre-election threat to scrap the project.

New Prime Minister Ranil Wickremesinghe, before last month's presidential vote, said he would cancel the port deal if his party came to power. Maithripala Sirisena, backed by Wickremesinghe's party, unseated ex-president Mahinda Rajapaksa at the polls.

"We can renegotiate with China after reassessing the deal," Cabinet Spokesman Rajitha Senarathne told reporters.

"We need to see the feasibility study. We need to see the environmental impact assessment (EIA) and reassess the tax concessions given to it and land ownership issues."

He said the current government had not seen any EIA or feasibility study of the project and it needed to be re-assessed because of impacts on coastal erosion.

Work has already begun on construction of the port city, launched by Chinese President Xi Jinping when he visited in September last year.

The site is on 233 hectares of reclaimed land in the capital, Colombo. Under the proposed deal, 108 hectares would be given to the Chinese firm, including 20 hectares on an outright basis and the rest on a 99-year lease.

The site is on 233 hectares of reclaimed land in the capital, Colombo. Under the proposed deal, 108 hectares would be given to the Chinese firm, including 20 hectares on an outright basis and the rest on a 99-year lease.

Sri Lanka's giant neighbor India, which has uneasy relations with China, is worried about the port city project.

Indian diplomats have told Reuters the 20-hectare plot is a security concern because of the large number of India-bound cargoes that pass through Colombo port.

China Communications Construction Co Ltd said in a statement issued on Wednesday an initial technical feasibility study and EIA had been carried out and approved by the previous Rajapaksa government.

It said an environmental management plan had been provided by the company "after monitoring the environmental impact, especially the erosion of the beach, according to the requirement of EIA".

"We are open to cooperate with the government authorities and provide all the information required according to the relevant regulations, believing on a strong cooperation together to the best success of this magnificent project," it said.

Wickremesinghe's pro-business United National Party says some development deals struck by the previous government, which was heavily dependent on China for infrastructure, did not follow appropriate tender procedures and were not transparent.

The port development would include shopping malls, a water sports area, golf course, hotels, apartments and marinas.

 

[Raphael]

As I expected. We have watched the same theatre take place before in many African countries that underwent color revolution, and we know exactly how to play our part

 

[TheMatador]

After so much boasting from Indians, the new Sri Lanka government is ready to invite PLAN carrier battlegroups. They will open the third front against India together with China and Pakistan.

 

[Beast]

I bet Xi give an warning to new Sri Lankan that no matter previous or new government ink the deal. They must honour it no matter what since money has already transfer and construction started. Null of the deal without money back given back will means war.

 

[Gibbs]

As I expected. We have watched the same theatre take place before in many African countries that underwent color revolution, and we know exactly how to play our part

After so much boasting from Indians, the new Sri Lanka government is ready to invite PLAN carrier battlegroups. They will open the third front against India together with China and Pakistan.

I really dont know why anybody would have thought otherwise.. Except for that poster boy for the defeated Rajapaksa regime trying his best to sooth his pain by posting nonsense here on perceived India vs China hulabaloo.. Everybody else knew nothing drastic will change Sino/Lanka relationship whatever the new govt is..

Our Chinese friends need to under stand the new govt came to power on a mandate to free the countrycorruption.. As as they are finding out the former regime had been filtering billions of dollars through middle men from some of these projects with unprecedented amount of corruption, So what ever action they take to review these projects are not aimed at China but at the corrupt former regime

Thing will be back to normal after the normal legal proceedings are cleared

 

[Established_1965]

After so much boasting from Indians, the new Sri Lanka government is ready to invite PLAN carrier battlegroups. They will open the third front against India together with China and Pakistan.

Pakistan is dependent on China because of terror issues and India but why would Sri Lanka join Chinese club ??.

Why should Sri Lanka spoil her relationship with India which is more important than China? Economically, India is Sri Lanka's largest trade partner.

According to International press, Mr. X-Sri Lank president invited China because of international isolation but now it's gone due to Government change which means China lost it's trump card.

 

[Gibbs]

Pakistan is dependent on China because of terror issues and India but why would Sri Lanka join Chinese club ??.

Why should Sri Lanka spoil her relationship with India which is more important than China? Economically, India is Sri Lanka's largest trade partner.

According to International press, Mr. X-Sri Lank president invited China because of international isolation but now it's gone due to Government change which means China lost it's trump card.

No body would need loose anything.. Especially Sri Lanka is in a win win situation.. The strong relationship China has with Sri Lanka is not a recent one, Goes on for decades, That would not change.. It's just that under the Rajapaksa regime the country got highly isolated internationally so obviously Chinese cooperation was highlighted more.. Now they need to get back in to a more non aligned policy.. A small country like Sri Lanka should not and cannot afford to be part of global power politics..Whether it is India,China or the US

But this change of policy wont be at the detriment of China, But for a more balanced foreign policy

 

[Established_1965]

No body would need loose anything.. Especially Sri Lanka is in a win win situation.. The strong relationship China has with Sri Lanka is not a recent one, Goes on for decades, That would not change.. Under the Rajapaksa regime the country got highly isolated internationally so obviously Chinese cooperation was highlighted more.. Now they need to get back in to a more non aligned policy.. A small country like Sri Lanka should not and cannot afford to be part of global power politics..Whether it is India,China or the US

But this change of policy wont be at the detriment of China, But for a more balanced foreign policy

Completely Agreed!
Sri Lanka and Singapore are kind of in same situation so its easy for me to understand ur concern.

Sri Lanka need to play safe and make use of both India and China like Singapore is doing

 

[Raphael]

I really dont know why anybody would have thought otherwise.. Except for that poster boy for the defeated Rajapaksa regime trying his best to sooth his pain by posting nonsense here on perceived India vs China hulabaloo.. Everybody else knew nothing drastic will change Sino/Lanka relationship whatever the new govt is..

Our Chinese friends need to under stand the new govt came to power on a mandate to free the countrycorruption.. As as they are finding out the former regime had been filtering billions of dollars through middle men from some of these projects with unprecedented amount of corruption, So what ever action they take to review these projects are not aimed at China but at the corrupt former regime

Thing will be back to normal after the normal legal proceedings are cleared

I appreciate the reassurances. Nonetheless, I would like to assure you that we never lost faith or confidence in Sri Lanka. This whole theatre reminds me of when Michael Sata became President of Zambia, and the Western press waited with bated breath for Sata to launch a bloody massacre and ethnic cleansing of all Chinese businessmen in the country. To their great disappointment, this never happened, and China continued to grow its burgeoning economic relations with Zambia.

Similarly, when Myanmar partially thawed relations with US in 2009, the Western media had a field day, and eagerly speculated that Myanmar was about to join the containment bloc and once again, massacre all Chinese in the country. And once again, that never happened and we have scored pretty much all the infrastructure/economic projects we wanted, especially much coveted gas/oil pipelines.

Ultimately, it's a matter of media spin. As recently as one decade ago, Western media generally announced and acknowledged all our accomplishments with confidence, and arguably a sneering and rather patronizing tone. But not so long ago, this changed so that there came a quality of extreme desperation and hysteria that now characterizes their reporting on China. The smallest incidents are ballooned into signs that foretell the imminent collapse of China, and the imminent triumph of US hegemony for all eternity. For instance, we recently posted 7.4% GDP growth, and this was spun as "China's economy grows at its slowest date in a quarter-century - is collapse imminent?", in all major western news outlets. And when Cuba recently reestablished basic diplomatic relations with the US, many news agencies wrote editorials asking, "Is this the end of Chinese influence in all Latin America?"

Anyway, I much prefer the current desperate tone of Western media to the former arrogant tone. It shows we're making an unnerving amount of progress. And in contrast, if their editorial stance returns to their formerly arrogant and casual tone, I will know that we have screwed up somewhere.

 

[Gibbs]

I appreciate the reassurances. Nonetheless, I would like to assure you that we never lost faith or confidence in Sri Lanka. This whole theatre reminds me of when Michael Sata became President of Zambia, and the Western press waited with bated breath for Sata to launch a bloody massacre and ethnic cleansing of all Chinese businessmen in the country. To their great disappointment, this never happened, and China continued to grow its burgeoning economic relations with Zambia.

Similarly, when Myanmar partially thawed relations with US in 2009, the Western media had a field day, and eagerly speculated that Myanmar was about to join the containment bloc and once again, massacre all Chinese in the country. And once again, that never happened and we have scored pretty much all the infrastructure/economic projects we wanted, especially much coveted gas/oil pipelines.

Ultimately, it's a matter of media spin. As recently as one decade ago, Western media generally announced and acknowledged all our accomplishments with confidence, and arguably a sneering and rather patronizing tone. But not so long ago, this changed so that there came a quality of extreme desperation and hysteria that now characterizes their reporting on China. The smallest incidents are ballooned into signs that foretell the imminent collapse of China, and the imminent triumph of US hegemony for all eternity. For instance, we recently posted 7.4% GDP growth, and this was spun as "China's economy grows at its slowest date in a quarter-century - is collapse imminent?", in all major western news outlets. And when Cuba recently reestablished basic diplomatic relations with the US, many news agencies wrote editorials asking, "Is this the end of Chinese influence in all Latin America?"

Anyway, I much prefer the current desperate tone of Western media to the former arrogant tone. It shows we're making an unnerving amount of progress. And in contrast, if their editorial stance returns to their formerly arrogant and casual tone, I will know that we have screwed up somewhere.

Not trying to sugercoat the so called western "free media".. But in this case i think more than the western media it's the Indian media that is having orgasms.. Any way usually sensationalist, they have gone over board with this thing unnecessarily over hyping an alleged Indian role in regime change to counter balance Chinese influence.. Quite hilarious

 

[Guynextdoor2]

As I expected. We have watched the same theatre take place before in many African countries that underwent color revolution, and we know exactly how to play our part

Yeah like the tinpot dictator ready to rob and exploit them.

 

[Raphael]

Yeah like the tinpot dictator ready to rob and exploit them.

But you already got your color revolution and removed Chinese influence. After all, Indian media had a field day boasting of the efficacy of RAW in subverting the sovereignty and meddling in the affairs of countries in "India's backyard". If at this point, they still choose to engage China economically, we must assume they did so of their own free will, and completely in their own national interests.

 

[mike2000]

Politicians and their promises when they wanna get elected.

 

[Shotgunner51]

As I expected. We have watched the same theatre take place before in many African countries that underwent color revolution, and we know exactly how to play our part

As expected, jack pot.

Long 601880.SS, closing RMB 5.59 today. RMB 2.49 12-month-back, YOY 2.25x multiple or +125%, very good year.

 

[Chinese-Dragon]

But you already got your color revolution and removed Chinese influence. After all, Indian media had a field day boasting of the efficacy of RAW in subverting the sovereignty and meddling in the affairs of countries in "India's backyard". If at this point, they still choose to engage China economically, we must assume they did so of their own free will, and completely in their own national interests.

They played their hand badly, again.

The truth is that we win contracts because we have the most experience in building infrastructure in the developing world, and our $4 trillion currency reserves means we can give out loans at the cheapest rates of interest.

Same with our products, we win because we are the most competitive. Nobody buys our products as a favor to us, they do it because we provide the best value for money.