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.
News
Washout against Afghanistan sends India into semi-finals
India are through to the semi-finals of the Asian Games men’s tournament, with persistent rain and a damp outfield in Nisshin forcing the abandonment of their quarter-final against Afghanistan 16 minutes before the scheduled toss. India’s higher seeding – determined by the ICC T20I team rankings – ensured they went through at Afghanistan’s expense.
India will next face the winners of Tuesday’s quarter-final between Nepal and Sri Lanka in Thursday’s second semi-final. As one of the four seeded teams – India, Pakistan and Bangladesh are the others – to qualify directly for the quarter-finals, Sri Lanka will progress to the semi-finals if their match against Nepal is washed out too.
News
Sajith rejects Jt. Opp. protest sabotage claim; SJB TU chief demands remedial action
By Shamindra Ferdinando
Alleging that the Samagi Jana Balawegaya (SJB) had betrayed the joint protest campaign, planned on 24 Sept., at Polduwa junction, against the enactment of the 22nd Amendment without securing public approval at a referendum, SJB trade union leader Ananda Palitha emphasised that SJB and Opposition Leader Sajith Premadasa should take remedial measures to restore the alliance against the NPP government.
Responding to The Island queries, the trade union activist said that he spoke on behalf of the vast majority of the SJBers who felt betrayed by the sudden declaration made by Colombo District SJB lawmaker S.M. Marikkar that they didn’t expect Opposition political parties’ participation, except that of the UNP.
Pointing out that at the behest of Premadasa, MP Marikkar belittled those who had pledged on 17 Sept. to join the SJB-led protest, Palitha emphasised the Opposition leader should be held responsible for restoring the shattered alliance. Palitha warned that the NPP, which was rapidly moving on a dictatorial path, would be the beneficiary of such treacherous actions.
When The Island raised the allegations pertaining to the 24 Sept. protest, Colombo District MP Premadasa said there was no basis for such claims. MP Premadasa called the accusations directed at him ‘rubbish.’
Palitha said that the pathetic failure on the part of the Opposition to genuinely challenge the authoritarian NPP should be examined, taking into consideration the government following an agenda almost 100 percent against the election pledges. Except the much touted anti-corruption campaign, the NPP reneged on all its election promises.
Recalling massive rice imports after having promised to stop the same in the run up to the national elections in 2024, Palitha alleged that the utterly corrupt NPP created an artificial shortage to enable import of large stocks of salt for their benefit. Massive earnings were made through commissions, Palitha said, urging the SJB to reiterate its commitment to the 17 Sept. pledge. According to him, the SJB’s irresponsible action sabotaged the joint Opposition agreement reached on the eve of President Anura Kumara Dissanayake completing two years in Office.
Palitha said that the disruption of a genuinely joint protest, at the last moment, caused irreparable harm to the Opposition. The unexpected eleventh hour declaration made by the SJB upset their efforts to organise a large scale two-day protest on 24 and 25 Sept. Palitha emphasised the responsibility on the part of the SJB leadership and its top management to spearhead an all-out campaign against the government. The former petroleum sector employee said that a strong and transparent campaign could undermine the NPP within as a section of its parliamentary group was deeply dismayed by the current policies and strategies.
Palitha, in his capacity as the trade union leader, invited the Bar Association of Sri Lanka (BASL) to join the trade unions’ protest on 25 Sept. to intensify pressure on the government. BASL President Rajeev Amarasuriya told The Island that they didn’t accept that invitation.
Former SLPP Kalutara District MP Sanjeewa Edirimanna said that the SJB was far more keen to organise a large-scale protest to counter the SLPP’s highly successful Anuradhapura rally held on 12 September than a genuine joint protest against the 22nd Amendment or the government. Edirimanna said that they realised that the SJB would probably join a joint protest campaign only after organising a gathering to counter the SLPP. According to him, the SJB hadn’t been honestly interested in a joint protest campaign. Instead, it sought to resist possible challenges from rival political parties, he said.
An aide to UNP leader and former President Ranil Wickremesinghe said that though the SJB announced they were welcome to join the 24 Sept. protest, the party never received an invitation. The official said that some UNPers joined the protest on their own though the party neither directed supporters to join or boycott the event. As the Janathawadi Joint Opposition decided against participating for want of formal invitations, the UNP, as part of that group, decided not to join the 24 Sept. protest.
News
Police remove Thileepan statue in Jaffna
By Norman Palihawadane
Police have removed a memorial statue of former LTTE member Rasaiah Parthipan, alias Thileepan, from the Thileepan Memorial Square in Nallur, Jaffna, following the conclusion of commemorative events, marking the 39th anniversary of his death.
The statue was removed in the early hours of yesterday (27), a day after the final day of the commemoration was held at the site.
CCTV footage from the memorial reportedly shows police officers removing the statue and taking it away in a vehicle.
Tamil National People’s Front (TNPF) Secretary and MP Selvarasa Gajendran alleged that more than 15 police officers arrived at the site, without prior notice, entered the premises wearing footwear, and forcibly removed the statue.
The reason for the removal and the legal basis for the police action had not been officially announced as of yesterday.
Thileepan, a former political wing leader of the LTTE, died in September 1987, after undertaking a hunger strike in Nallur, while making several demands of the Indian Government.
The memorial events, marking the 39th anniversary of his death, were held at the site on Saturday (26). A statue had been erected at the location in connection with the commemoration.
-
News6 days agoMastermind Naufer Moulavi among 15 found guilty
-
Midweek Review6 days agoThileepan’s fast unto death: An authentic narrative that many missed
-
News7 days agoProtest against setting up of cement factory in highly populated area near BIA
-
Latest News5 days agoShowers above 100 mm are likely at some places in the Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara Districts
-
Editorial7 days agoTrouble beginning in earnest
-
Editorial6 days agoBig Bad Bills
-
News7 days agoPolice may seek clarification from US
-
News7 days agoGovt. confident of 2/3 majority despite NPP split speculation
