China has expressed sadness over Sri Lanka’s decision to default on its debts at the International Monetary Fund (IMF).
Chinese Ambassador to Sri Lanka Qi Zhenhong told that China was “sad” that Sri Lanka went to the IMF and defaulted on its debt, adding that China was watching Sri Lanka’s negotiations with the Washington-based lender.
“China has done its best to help Sri Lanka not to default but sadly they went to the IMF and decided to default,” Ambassador Qi said.
The debt restructuring definitely will have an impact on future bilateral loans. China is closely monitoring the IMF discussion with Sri Lanka. Countries that colonized Sri Lanka have more obligations to help at this juncture, he said.
The Ambassador assured that, however, China will continue to disburse old loans as agreed.
“China is doing all-out efforts including from local governments, social groups, companies, schools, etc., to support Sri Lanka overcome current difficulties,” he revealed.
Ambassador Qi also pointed out that in the past two years, China has extended to Sri Lanka 26 million doses of vaccine, numerous PPEs & medical equipment, 2.8 billion USD of financial support, and 11,000 jobs for Sri Lankans in Chinese projects, Etc.
Among the hundreds of joint projects between the two countries, most have generated economic or social benefits to Sri Lanka and her people, such as the Katunayake Expressway, Southern EW, Norochcholai Power Plant, and the CICT, and many water projects, etc. It is unrealistic to have all projects and loans flawless, he said.
Commenting on further financial assistance, Ambassador Qi said financial departments and institutes of both China and Sri Lanka are still working closely on the new financial requests, such as loans and buyer’s credit raised by Sri Lanka.
The requests are being considered in the backdrop of Sri Lanka’s temporary suspension of debt payment and the talks of debt restructuring with the IMF, he said.
Explaining that the economic crisis and debt burden of Sri Lanka has their own historical reason, and could not be solved overnight, the Chinese Ambassador said China is not the only lender and neither the biggest lender of Sri Lanka.
Most of the Chinese loans are concessional and go to infrastructure and eco-social development, he added.
The Chinese Ambassador to Sri Lanka also stressed that the Debt Trap is only a myth, created and hyped by some foreign media and politicians intentionally.
In 2017, SL decided to raise dollars by leasing out the Hambantota Port to China and used the cash infusion to pay back due International Sovereign Bonds, but not to Chinese banks, he revealed.
Chinese Ambassador Qi Zhenhong expressed these views during a free and open dialogue with a group of local journalists on a wide range of topics including China’s aid to Sri Lanka, financial and economic cooperation to overcome the current crisis, and people-to-people exchanges, etc.
(courtesy NewsWire)
