News
China replies in kind to US allegations of Beijing exacerbating debt crisis here
Chinese financial institutions have reached out to Sri Lanka and had shown full readiness to find a way to handle the matured Chinese loans and help Sri Lanka to overcome the difficulties, Chinese Foreign Ministry Spokesperson Zhao Lijian said during his Regular Press Conference in Beijing.
Lijian made this statement in response to a question by a Global Times journalist about a recent statement by the Administrator of the United States Agency for International Development, Samantha Power, who said that China has provided Sri Lanka with “opaque loan deals at higher interest rates than other lenders” and financed infrastructure projects that often served little practical use, over the past 20 years.
The Global Times journalist asked:”She added that China should participate in debt relief transparently and on equitable terms with all other creditors. What is China’s comment?”
Zhao Lijian said that China-Sri Lanka practical cooperation 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.
“Sri Lanka’s foreign debt is made up of multiple components. The share of China-related debts is far lower than that of the international capital market and multilateral development banks. Besides, 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 showed full readiness to find a proper way to handle the matured debts concerning China and help Sri Lanka to overcome the difficulties,” he said.
The Chinese Foreign Ministry Spokesperson stressed 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, which have 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, he said.
“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. The US should ask itself: What has it done for the sustainable development of developing countries like Sri Lanka? What harm have US unilateral economic, financial and foreign policies brought to other countries? 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 said.
Latest News
Peter Magyar sworn in as Hungary’s PM, ending Orban’s 16 years in power
Peter Magyar has been sworn in as Hungary’s new prime minister, almost a month after parliamentary elections that ended Viktor Orban’s 16 years in power.
Magyar, 45, who leads the centre-right Tisza party, was propelled into office on promises of change after years of economic stagnation under Orban, and strained ties with key allies, including the European Union.
On Saturday, Magyar invited Hungarians to “step through the gate of regime change”.
His party has a huge parliamentary majority, winning 141 of the 199 seats.
However, Magyar faces several challenges in his new role, including restoring Budapest’s relations with the EU, reviving the economy and tackling a budget deficit that reached almost three-quarters of its full-year target by April.
A ceremony was held inside Hungary’s neo-Gothic parliament building as Magyar was sworn in. The EU flag, removed under Orban, was displayed inside the chamber for the first time in 12 years.
The newly appointed parliamentary speaker, Agnes Forsthoffer, used her first decision in office to order the flag’s reinstatement, describing the move as “the first symbolic step on this path [back to Europe]”.
The new prime minister aims to strike a deal with the EU that would unlock around $20bn in frozen funding. The money was withheld over concerns about worsening human rights under Orban and a decline in the rule of law.
During Orban’s tenure, Hungary drifted further away from the EU as ties with Moscow deepened. The former prime minister used his veto in the European Council to oppose sanctions on Russia and block support for Ukraine.
Theofanis Exadaktylos, a professor of European politics at the University of Surrey, told Al Jazeera that Magyar will need to prove he is different from Orban while dealing with the bureaucracy left behind by his predecessor.
“The challenges for the new PM are primarily related to the extensive presence of the previous regime. Orban was in power for such a long time and he has managed to change Hungary substantially from an administrative point of view. To that end, uprooting the previous establishment will be a challenge,” he said.
“The second [challenge] will be to establish himself as different to the previous regime. Considering his background there will be sceptic voices, however let’s not forget that ideologically he belongs to the right,” he continued.
“Nonetheless, his election marks a turning point in Hungary showcasing that the previous regime had started to lose ground in its popular basis. The third challenge is the way he will reconnect Hungary to the European Union: to that end, he has a bit of work to do from a diplomatic point of view to create new allies within the Union.”
Magyar’s rise to prime minister is widely regarded as a remarkable feat. He was largely unknown in Hungarian politics until early 2024, when he became embroiled in a public dispute with Orban’s ruling Fidesz party, of which he had previously been a prominent member.
[Aljazeera]
Latest News
Senior Sri Lankan monk arrested for alleged child sex crimes
A prominent Buddhist monk has been arrested in Sri Lanka for allegedly sexually abusing an 11-year-old girl, in the highest-profile case involving a local religious leader.
Authorities took 71-year-old Pallegama Hemarathana into custody on Saturday from a private hospital in the capital, Colombo, where he had checked in for treatment as a criminal probe against him progressed.
Hemarathana is accused of committing the abuse in 2022 in a highly venerated temple in Anuradhapura, where he is the chief priest.
Authorities said the victim’s mother has also been arrested for aiding and abetting the monk.
“We will be guided by the magistrate on further action,” a police statement said Saturday.
Hemarathana, who had been subject to a foreign travel ban, was detained on the orders of the chief magistrate in Anuradhapura, after child protection authorities cited complaints of delays in his arrest, reported Sri Lanka’s Daily News. It said the court instructed police to arrest Hemarathana and bring him before the court “without delay”.
There have been several cases of clergy abusing children in Sri Lanka, but the latest arrest involves the most senior monk to be accused of such a crime.
Last month, 22 monks were arrested at Colombo’s international airport after 110kg (242lbs) of cannabis were found hidden in their bags, in what was the biggest drug smuggling discovery ever in the facility.
[Aljazeera]
Business
Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam
Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.
The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.
The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.
The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.
During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.
Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.
Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.
Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.
Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.
(PMD)
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