News
China won’t be derailed by Trump strategy – Chinese Embassy in Colombo
Status of mega H’tota project, debt-restructuring explained
IMF criteria blocking already approved tax concession for mega USD 3.7bn oil refinery project remains unresolved
By Shamindra Ferdinando
China is confident that significant upheaval that had been caused by President Donald Trump’s unpredictable strategies in respect of Russia, Western Europe and rest of the world wouldn’t alter their strategic planning and objectives.
Calling China’s relationship with Russia mature, resilient and stable, the Chinese embassy here reiterated Chinese Foreign Minister Wang Yi’s recent declaration their partnership wouldn’t be influenced by any turn of events, let alone be subject to interference by any third party.
The Chinese embassy team led by Qi Zhenhong explained the current status in response to The Island query posed at a meeting between the Colombo-based mission and the media at the embassy last Friday (14). China is of the view Trump’s destructive agenda couldn’t derail their plans and they being buoyant it could meet any eventuality.
The Chinese embassy called the meeting to discuss the government work report that dealt with 2024 achievements and 2025 targets in the wake of the recently concluded annual sessions of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) held separately, but at the same time. The CPPCC is widely considered an advisory body. The embassy also dealt with foreign policy matters.
The team consisted of Ambassador Qi Zhenhong, Deputy Chief of Mission and Minister Counsellor Yanwei Zhu, Chief of Political Section Qin Ligong, third Secretary Jin Enze, third Secretary Kang Jie, third Secretary Wang Kai and attache Xing Chaoyang.
The Chinese embassy emphasised China’s abiding interest in seeking what they called a shared future for the two countries while referring to various projects implemented over a period of time for the benefit of Sri Lanka. The embassy emphasised that China’s growth would be essentially beneficial to their friends and Sri Lanka is one of those countries that enjoyed special status. The embassy stressed that the category of countries chosen for a shared future was restricted.
The embassy highlighted China’s foreign exchange reserves surpassed 3.2 trillion USD, China created 12.56 mn new urban jobs, per capita disposable income grew up 5.1% in real terms, the value addition of high-tech manufacturing and equipment manufacturing rose by 8.9 % and 7.7%, respectively and output of new energy vehicles passed the 13 mn mark.
China targeted a modest economic growth of around 5% for 2025 while China’s Gross Domestic product (GDP) rose to 134.9 trillion Yuan in 2024, a year-on-year increase of 5%. China estimated deficit to GDP ratio at around 4% for 2025 while targeting a drop of around 3 % in energy consumption per unit of GDP in 2025.
China also targeted CPI (Consumer Price Index) growth of around 2%. Three other key targets were grain output of around 700 mn metric tons and 12 mn new urban jobs in 2025. However, China acknowledged that unemployment remained an issue in some areas. Asked to explain how China intended to address the unemployment issue, Minister Counsellor Yanwei Zhu acknowledged the difficulty caused by the reluctance on the part of the youth to take ordinary jobs. Zhu claimed that the majority wanted to join major companies.
According to the work report, China has estimated urban unemployment rate at around 5.5 % for 2025. References were made during the Chinese embassy briefing to Minister Yi’s media comments on the sidelines of the ‘two sessions.’ China dealt with several contentious issues including what they called the Taiwan question, South-China sea ‘confrontations’ and ‘conflict’ with Japan. China issued an unmistakable warning to Tokyo that Japan should be prepared to face the consequences of provoking trouble over Taiwan while Beijing sought to normalise relations with India.
Calling it strategy head-of-state diplomacy, China declared that its relations with the world underwent both positive and profound changes. China also reiterated its commitment to the global South whatever the global changes were.
In an obvious reference to the US, China has declared that those with stronger arms and bigger fists shouldn’t be allowed to have control over a particular situation.
Against the backdrop of President Anura Kumara Dissanayake’s state visit to Beijing, the Chinese embassy explained the current status of bilateral relations.
Responding to a media query, Minister Counsellor Yanwei Zhu explained the hurdles faced by the mega USD 3.7 bn Sinopec project to build an oil refinery in the Hambantota district. Zhu asserted that the project would have a major impact on the economy. The Chinese embassy number two said that Sinopec wouldn’t have chosen Hambantota if not for the high level political relationship between China and Sri Lanka.
Zhu stressed that Sinopec required more land, water remained an issue as farmers feared they would be deprived of water, concerns raised by the CPC and the tax exemptions as a result of IMF intervention following the economic crisis. Zhu said that the Sinopec team is here for discussions. The diplomat said that Sinopec needed the tax concessions that had been available at the time they first negotiated the agreement on the proposed oil refinery at Hambantota.
The media sought a response to Tamil MP Selvam Addaikalanathan’s accusation that China was seeking to exploit the ongoing Tamil Nadu poaching in Sri Lanka’s northern waters. Declaring China’s support for Sri Lanka, China expressed the view that Sri Lanka had the wisdom and capacity to address the issue at hand.
Responding to another query, Ambassador Qi Zhenhong pointed out that China finalized a debt restructuring agreement with Sri Lanka to restructure USD 4.2 bn debt. The Chinese envoy said that China’s Exim Bank suffered significant losses as a result of the restructuring process. The ambassador emphasized that China was the first country to finalize a debt restructuring agreement with Sri Lanka. He said so when the media asked him when would China finalise an agreement on its own in the wake of Japan and Sri Lanka entering into a pact in this regard.
China entered into the agreement on June 26, last year whereas the agreement with Tokyo was signed on March 7 to restructure USD 2.5 bn.
News
Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up
Harsha rejects what he called frivolous accusations
Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.
The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”
Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.
The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),
M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).
Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.
Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”
The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).
Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.
Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.
Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).
by Shamindra Ferdinando
News
Viral diseases on the rise
The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.
Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).
He said more than half of the reported cases—around 51 percent—were from the Western Province.
According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.
The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.
Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.
The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.
by Chaminda Silva
News
Ranil warns of another economic crisis, calls for Opposition unity
Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”
Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.
He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.
Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.
Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.
Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.
He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.
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