News
Discussions with China underway to resolve economic crisis
USD 2.5 bn funding:
Amb Zhenhong silent on IMF intervention
By Shamindra Ferdinando
The cash-strapped Sri Lankan government is negotiating with China for funds amounting to USD 2.5 bn in addition to USD 2.8 bn obtained since the global epidemic Covid-19 eruption in early 2020.
Chinese Ambassador Qi Zhenhong disclosed Sri Lanka’s request at the onset of a media briefing held at the Kingsbury Hotel in Colombo yesterday (21).
The disclosure was made close on the heels of the finalisation of USD 1 bn loan facility provided by India and President Gotabaya Rajapaksa’s declaration of his readiness to seek IMF assistance. Amb. Zhenhong declined to comment on Sri Lanka’s decision to resume negotiations with the IMF.
Sri Lanka announced plans for talks with the IMF in the wake of an increase in prices of all essential items and services following the floating of the Rupee in the first week of March.
Amb. Zhenhong said that China recently received requests for USD 1 billion financing facility and USD 1.5 bn buyer’s credit. The Chinese envoy declared: “We understand the urgency in Sri Lanka’s need. Relevant authorities are studying the request.”
In spite of repeated questions, Amb Zhenhong refrained from going into details, including Sri Lanka’s specific needs while reiterating their commitment to help a friendly country.
Zhenhong presented his credentials to President Gotabaya Rajapaksa in mid Nov 2020 at the height of the first Covid-19 wave.
At the commencement of the briefing attended by local and Colombo based international media, Amb. Zhenhong said a range of events and activities conducted so far this year to mark 65th anniversary of China-Sri Lanka diplomatic relations and the 70th anniversary of the Rubber-Rice pact.
Responding to a query raised by Reuters, Amb Zhenhong said that USD 1 bn term financing facility had been provided on March 18, 2020 and April 12, 2020 (USD 500 mn each) with maturity period of 10 years. That was followed by CNY 2 bn (approximately USD 300 mn) term financing facility provided on Aug. 17, 2021, Amb Zhenhong said, adding CNY 10 bn (approximately USD1.5 bn) bilateral currency SWAP agreement was finalized in March 2021.
The Chinese envoy sidestepped a specific query on President Gotabaya Rajapaksa’s request to restructure debt repayments to overcome the financial crisis.
President Rajapaksa made the request during a meeting with Chinese Foreign Minister Wang Yi in early January this year.
New requests for USD 2.5 bn (USD 1 bn financing facility and USD 1.5 bn buyer’s credit) are believed to have been made following the Chinese Foreign Minister’s high profile visit.
Asked whether India has overtaken China in providing assistance and investments here, Amb Zhenhong listed Chinese loans and investments while asserting consistency, scale and comprehensiveness in their role. The Chinese envoy didn’t respond to the query on Finance Minister Basil Rajapaksa being too close to India and pursuing an agenda at the expense of Beijing.
Amb Zhenhong dismissed assertions that the failure on the part of the Colombo Port City to attract investments and concerns over proposed Free Trade Agreement (FTA) between China and Sri Lanka. Amb Zhenhong assured: “We’ll never take advantage of FTA with Sri Lanka.” The Chinese envoy said so when the media queried the absence of a draft of FTA and serious concerns over its content against the backdrop of the previous Sri Lanka administration finalizing FTA with Singapore under controversial circumstances.
Amb Zhenhong said that the experts of both sides could handle the issues at hand.
Amb Zhenhong said that in spite of Covid-19 eruption China sustained its projects here with over 11,000 locals hired. Referring to major Chinese projects underway here namely Colombo Port City, Colombo International Container Terminals (CICT) and Hambantota International Port (HIP), Amb Zhenhong emphasized their ventures were on track.
The envoy questioned the unexplained suspension of ADB funded power projects in the North while declining to respond to questions regarding the status of them. The Chinese envoy advised that such an attitude on Sri Lanka’s part would be inimical to ongoing efforts to attract foreign investment.
The Chinese envoy avoided responding to queries regarding growing Indian presence in the Northern and Eastern Provinces of Sri Lanka and instances of India objecting to Chinese taking up projects. However, Amb Zhenhong explained the projects undertaken by China in Tamil dominated region, investments and grants made in support of the civilian community there.
The Department of Education has announced that the results of the 2024 General Certificate of Education Advanced Level Examination have been released online, and can be viewed on : www.doenets.lk
Prime Minister Dr. Harini Amarasuriya stated that the training of teachers required for the new education reforms will commence in May, and that contracts granted to political cronies in local government institutions will be brought to an end following the upcoming local government elections.
The Prime Minister made these remarks while addressing public gatherings held in the areas of Mirigama, Minuwangoda, and Katana in the Gampaha District.
Addressing the gatherings, Prime Minister stated:
“From birth to death, all the aspects of life of a person are handled by local government institutions. However, to this day, these institutions lack proper systems even to provide the people with basic facilities.
We are committed to working with a proper system, free of fraud and corruption, and managing every rupee carefully and attentively. We are identifying the needs of people and implementing projects under a systematic plan to develop rural sectors.
You elect fellow members who stand firmly against fraud and corruption through two decisive elections. First, you elect Anura Kumara as President, a leader committed to fighting corruption. Then, in the parliamentary election, you choose a group of qualified individuals who are equally dedicated to this cause to represent you in Parliament.
To ensure that the funds allocated for rural development reach the people, the local government institutions which are the closest to the villagers must also be clean and transparent. That is why this election is so important to us.
The people and the villages come to experience our corruption-free political culture through local government institutions. These institutions must properly implement, monitor, and evaluate the development projects allocated to the rural sector. The era of awarding contracts for such projects to political cronies must end.
Although early childhood development is a crucial part of education, there has never been a proper system for it. We are now establishing such a system. Starting in May, teacher training for the modern education which is being introduced will begin. We have a comprehensive plan for development across all sectors.
The Ministry of Education has received billions worth of projects, but there is no proper implementation process. For example, 1,500 smart boards were brought for smart classrooms, but the Secretary to the Ministry has not implemented a system to distribute them to schools. Teachers have not been trained to use them. Teacher training institutes still follow outdated curriculum. This will be corrected through the new education reforms,
In order to deliver all these benefits to the rural sector efficiently, it is essential to elect the right people for the right purposes. Therefore, in the upcoming local government elections, Prime Minister Dr. Harini Amarasuriya urged the public to vote for the candidates who are free from fraud and corruption presented by the National People’s Power (NPP).”
The event was attended by Parliament Chief Organizer of the ruling party Dharmapriya Wijesinghe, Members of Parliament Ruwanthilaka Jayakody and Chaminda Lalith Kumara, along with several local government candidates and the residents of the area.
[Prime Minister’s Media Division]
Foreign Minister Vijitha Herath will represent Sri Lanka at the funeral of Pope Francis in the Vatican City, the Ministry said.
The funeral is scheduled for today.
About 50,000 people came to pay their respects to the late Pope on Thursday, the Vatican news service said.
“Pope Francis’ funeral Mass will take place on Saturday, April 26, at 10:00 AM in St. Peter’s Square, marking the beginning of the Novemdiales, an ancient tradition of nine days of mourning and Masses for the repose of the late Pope’s soul,” according to the Vatican news service.
“The Novemdiales Masses will be held each day at 5:00 PM (GMT +2) in St. Peter’s Basilica, except for the Mass on Divine Mercy on Sunday, April 27, which will take place at 10:30 AM in St. Peter’s Square.”
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