Connect with us

Opinion

Extricating ourselves from ‘China’s grip’?

Published

on

I was perplexed by the absurd claim made by G. A. D.Sirimal that China has been purposely trying to place Sri Lanka in a debt trap. This myth, most probably invented by Sinophobia groups, has been circulating in the media for some time. In Sri Lanka, certain political groups have picked it up when they ran out of other issues.

Let us look at some of the arguments.

(1) China’s overseas investments have a geopolitical motive: This is what an unnamed ‘African Research Assistant’ says. There is no clear evidence presented. At most this is no more than a private opinion.

(2) Most consequent investments are undertaken by the Chinese state-owned companies: What is wrong with that? We must remember that until recently China had a state run economy, and the financial organisations capable of investment in foreign countries are partly or fully owned by the state. Besides this, who said that all the funds invested in Sri Lanka in the past by the other countries, including several Western Countries in major development in projects, came from private sources? If that is the case, those countries must be having wonderful, highly philanthropic private investors.

(3) China has been ready to fund projects which were not financially viable (presumably with a view to keep Sri Lanka under debt obligations for long periods so that the investor can dictate its own terms): This is perhaps the strangest assertion made by Sinophobiacs.

The choice of capital projects, their study and formulation is always the function of the recipient country. The investor comes into the picture only after that. Unless Sri Lankans are a set of idiots who cannot decide, by themselves, on what to do about the economic development of the country, that work will not be entrusted to a prospective investor. If so, accusing China of deliberately choosing financially non-viable projects to fund is highly untenable. If someone has to take the blame for choosing financially non-viable projects, it is the recipient country authorities who have to take the blame. In any case, whether the major projects funded by China are non-viable is in my view a debatable issue. As far as we can see, most if not all China funded major projects (mentioned in Mr Sirimal’s letter) are infrastructure projects with long gestation periods. Their financial viability depends on the time horizon considered. In any case, their social benefits are usually much higher than their social costs. It is a great mistake to say that they will make the country poorer.

In this connection, it is necessary to point out a fact that has been often overlooked. If a proper planning procedure is in place, a public sector project will be subjected to a thorough technical study, which invariably shows the future cash-flow, and answers the question how the loan will be repaid (in the case of a loan funded project). Then a situation where a future owner comes along and declares his inability to amortize the debt cannot arise. If such a situation has arisen in the case of some of the large public sector infrastructure projects, it strongly suggests that the government of the day did not bother with the project planning part, rushed the project, by-passing the established good planning practices.

I am aware, through my long association with the National Planning Department, that there was a time-tested project approval procedure in operation, under which no capital project got included in the Government Budget unless it was first included in the Government’s Public Investment Programme. This means that the project would have been subjected to a good technical study and appraisal. In such a scenario, it will be a great mistake to blame the lender for funding non-viable projects. The lender came in because it trusted the borrower – a sovereign government guarantee about its repayment.

Those who blame China for certain ulterior motives in coming out to assist Sri Lanka should remember that China had always been a good and consistent friend of Sri Lanka – a country which has not asked for anything in return. The earliest instance which comes to our mind is the Rubber-Rice-Pact during the 1960s. The Government of the day faced a serious problem of supplying enough rice to the people, because the traditional suppliers failed to meet their obligations at a time when our country faced severe foreign exchange shortages. When we asked China to help, they came up with a brilliant proposal involving a barter arrangement: to exchange our rubber for Chinese rice. The older generation in our country will remember how some powerful Western countries strongly opposed this arrangement and did many things to sabotage it. (The barter arrangement was to pre-empt a powerful country from using its influence to intercept the flow of payments.) They also found some strong allies in Sri Lanka who, like the present day Sinophobia crowd, warned of dire consequences. But Mr R.G. Senanayaka, as Minister of Trade, gave bold leadership to implement the proposal. He had to wage a great struggle even against some members of his own Government. However, he somehow pushed it through. In the end, we avoided a serious shortage of food in this country and the rubber industry received a substantial boost, which lasted a number of years, perhaps a decade.

We also remember that during our struggle against the vicious terrorist outfit – the LTTE, most of our so-called special friends refused to sell us urgently needed arms. That is understandable, because one of them had a history of helping the LTTE terrorist group to establish itself by opening up training camps within its territory, and openly supplying them funds needed for their criminal activities.It was only China that came to our assistance at that time, and offered us whatever we asked for. Some people in this country seem to have already forgotten the fact that friendship with China was a critical factor in our success in the war against terrorism.

During the period following the defeat of terrorism, the LTTE Rump managed to organise a highly effective anti-Sri Lanka campaign in some of the Western countries, to punish us for winning the war and ending the life of the most dangerous terrorist leader. They were actively supported by the Darusman, Moon and Pillai group, and the Tamil diaspora crowd at the Geneva UNHRC. While all our traditional friends deserted us at Geneva meetings, and Sri Lanka’s own official response to the wild accusations of war crimes remained lukewarm and timid, it was China and Russia who unwaveringly stood by us.

Unlike some other powerful countries which try to enter into various kinds of cleverly drafted agreements with small countries, such as ours, by offering bribes (deceptively labelled development assistance) for the purpose of converting them eventually into military bases, China has never tried to draw us into great-power political conflicts in a similar manner.

There are several more such instances when China came to help Sri Lanka, and perhaps other similarly placed countries, displaying that country’s sincerity and maturity in conducting its foreign policy. Therefore, it is necessary to find every opportunity to express our gratitude to the great country – China, instead of pretending to find ways to extricate ourselves from non-existing traps.

S.A.K



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion

Bitter truth about laws and animal welfare

Published

on

Draft Animal Welfare Bill
National Dog Spay and Rabies Eradication Programme
Draft Animal Welfare Bill

By 2023 when the Draft Animal Welfare Bill was taken up for its first reading in Parliament, it has been made into a legal mess, denying legal protection to animals from cruelties.

In June 2023 our Coalition intervened and by March 2024 we got Parliamentary Sectoral Oversight Committee (SOC) to approve amendments that would make this bill exemplary, offering legal protection to all animals from cruelties, coupled with fines increased from Rs. 100,000 to 250,000- 500,000 to Rs. 5 million for animal abuse, with the fines doubling for abuse of pregnant animals.

But even after that Constitutional intervention and clear instructions to the relevant Ministry by the SOC to include the approved amendments, the Bill was prepared by that Ministry for the Second Reading in Parliament, dropping many crucial PARLIAMENTARY SOC-APPROVED AMENDMENTS.

Fortunately for the Animals of Sri Lanka, the Draft Bill was not taken up for the Second Reading.

The Parliament stands dissolved.

Attention President, Minister of Agriculture and Minister of Justice: This draft Bill must be presented in Parliament again ONLY after including the SOC-APPROVED AMENDMENTS.

Anyone trying to scuttle the process to pass a Bill that comprehensively provides legal protection to animals citing ANY reason, cannot have animal welfare in their hearts and minds.

2) The National Dog Spay and Rabies Eradication Programme

All one has to do is to travel round Sri Lanka to witness  the enormous numbers of ownerless dogs, some in shocking conditions, to judge how “efficient and sustainable  result-oriented” the National Dog Spay and Rabies Eradication Programme has been, after functioning under the Health Ministry with contract veterinarians for 15 years since 2008 till now, at a budgetary allocation ranging from Rs.100 million to Rs. 280 million annually.

Right now Rs. 200 million has been allocated to this fruitless, unmonitored, unevaluated activity, to SUSTAIN A BUSSINESS and not an accountable programme.

The move to have this programme executed by the ONLY State Entity that is responsible for handling and eradicating zoonotic diseases, the  Department of Animal Production and Health (DAPH), having recruited 500 additional veterinarians, was scuttled in 2019, and the Programme was taken back to the Ministry of Health, a State entity responsible for diseases that afflict humans and not animals and hence has no Veterinarians, for BUSINESS AS USUAL.

Attention President, Minister of Health, and Minister of  Livestock: This programme must be immediately vested in the DAPH so it can be made into a scientifically executed,  accountable, sustainable-results-generating programme that can be monitored and evaluated regularly.

Such a scientific, professional, and systematic DAPH-executed accountable programme, coupled with Owned Dog Registration will see significant results in two years towards zero dog population growth and dog rabies control towards eradication.

CPAPA – SL (The Coalition for a Pro-Animal Protection Act – Sri Lanka)

Continue Reading

Opinion

Landslide victories

Published

on

by Chula Goonasekera
Nagananda Kodithuwakku

President AKD and the NPP deserve applause and heartfelt congratulations for their organisation, information gathering, and dissemination of a vision that resonates with the people. They have successfully created an enormous wave of funding and support, culminating in a decisive victory over the corrupt factions that have contributed to the destruction of our nation and motherland. The NPP’s anti-corruption message resonated deeply with voters who have suffered across many sectors of society, including the economy, education, healthcare, and nutrition. The public trust generated by this movement has led to an exemplary landslide victory for the NPP in this general election.

However, as voters, we must remain mindful that Sri Lanka has witnessed landslide election results in 1970, 1977, 2010, and 2020—all of which ultimately resulted in a landslide toward the nation’s ill-being, leaving the country burdened with massive debts, corruption, indiscipline, brain drain, and economic collapse.

What is ironic in 2024 is that this landslide victory may be one of the most significant of the century. However, it also calls for critical reflection. For the first time, even Jaffna voted in favour of the NPP. This could indicate the beginning of the end of the divisive politics that have historically exploited racial and religious divisions. Perhaps this marks the dawn of a new, more unified political landscape—one that promotes a united Sri Lanka as one nation working toward an equal society across every corner of our motherland.

Despite the landslide, we must be fully aware of the potential for disinformation if proper actions and preventive measures are not taken. The constitutional gates of covert and overt political corruption remain open while, as a nation, we lack the compensatory capacity to face another political or financial crisis. Therefore, we must remain vigilant and ensure the continuity of national oversight to keep our new parliament and president on track despite the many distractions that could hinder their efforts for national freedom and development. One key strategy is to remain non-aligned but work with external forces through clear, transparent, and fair agreements that prioritise national benefit.

In this context, the priority for the NPP should be to make the Judiciary and the Bribery Commission independent, supported by a robust quality assurance system and a clear definition of ‘contempt of court’ to embed accountability. No national institution—especially the judiciary—can thrive without accountability and transparency. A recent example from the UK, the Post Office Scandal, underscores this point: a national service organisation made wrongful decisions that destroyed the lives of many innocent people, wrongly labelling them as criminals. A documentary exposing this injustice was widely circulated in the media, leading to justice for many victims, some of whom were no longer alive to witness it. In Sri Lanka’s current legal environment, such exposure could easily be misconstrued as contempt of court, with all involved potentially facing jail time.

An independent Judiciary and Bribery Commission, free from political interference, can be achieved through a parliamentary act requiring a two-thirds majority. This is paramount and should be implemented at the earliest opportunity to prevent politics from undermining legitimate processes. Such reforms will help resolve the deadlock that has stifled progress—particularly in addressing political corruption, including linked severe offences such as rape and murder. Furthermore, these reforms will clarify the constitutional changes necessary to prevent the legitimisation of political corruption, enabling the cleanup of a constitution that has been manipulated countless times to allow corrupt politicians to act with impunity despite blatant violations of good governance.

Continue Reading

Opinion

Srinivasan believed in Sri Lanka’s true potential: An appreciation

Published

on

Historical ties between Sri Lanka and India date back to the Ramayana era and the visionary missions of the Great Mauryan Emperor Ashoka. The emperor tasked his own son, Arahant Mahinda, and daughter, Bhikkhuni Sangamitta, with spreading the teachings of Gautama Buddha (dhamma), laying the foundation in the island nation of Lanka, probably visualising its potential in cultivating a unique culture.

In 1977, Sri Lanka opened its economy while our great neighbour India had a closed economy. The Indian Bank, a wholly owned entity of the Government of India, decided to set up the bank’s first offshore banking unit in Sri Lanka. The unit became the first Foreign Currency Banking Unit (FCBU) owned by a foreign bank in Sri Lanka and started operations in 1979.

The bank appointed the young banker V Srinivasan to head the FCBU unit in Colombo, which led to many transformational changes in banking and entrepreneurial relationships between the two countries. Late V Srinivasan had the rare opportunity to leave his footprint, being the only officer serving as the CEO of Indian Bank’s two overseas branches in Sri Lanka and Singapore.

The Indian Bank’s FCBU unit raised foreign currencies and arranged investments in the Katunayake Free Trade Zone and several other BOI-approved projects. Under Mr. V Srinivasan’s leadership, many projects were financed, including the first multi-purpose apartment and shopping complex in Kollupitiya, and value-added rubber and textile manufacturing projects in the Free Trade Zone in Katunayake. These projects enabled industrial technological know-how to flow into Sri Lanka. The Indian Bank recognised V Srinivasan’s leadership and promoted him to the bank’s CEO in the Colombo branch in 1985, thus managing the bank’s decades-old domestic operations specialising in international trade. During this period, he identified the true potentials in the Sri Lankan economy, such as financing value addition and branding of Ceylon Tea, and financing the construction of a glass-bottomed multipurpose boat as a tourist attraction.

Unfortunately, all the innovative projects came to a grinding halt with the July 1983 riots in Sri Lanka. Although the bank’s assets were subject to many risks impacting viable operations, V Srinivasan demonstrated his kindness by saving the bank’s vital intellectual capital, the human resource, from destitution and distress because of the ruthless communal riots in Sri Lanka. His passion for spotting talent and his caring attitude towards the well-being of staff probably made him the bank’s youngest General Manager, leading Human Resources prior to his retirement from the bank in 2011.

This writer was fortunate enough to sense and learn the social orientation of the business of banking as a budding banker under his stewardship. During his tenure, I had the opportunity to engage in negotiations as a young trade unionist. Our friendship continued even after both of us left the services of the Indian Bank for many decades. The last time I met Mr. V Srinivasan, his wife Kalpana, and his son Prasanna and family was while he was holidaying in Sri Lanka in 2010, catching up with beautiful memories. Mr. Srinivasan passed away at the age of 73 on 9th November 2024 in Chennai. May his departed soul rest in peace. Om Shanti.

Jayasri Priyalal

Continue Reading

Trending