The Chinese Embassy in Sri Lanka blames some foreign forces without willingness or abilities to help, are fabricating lies to obstruct the joint development of China and other developing countries including Sri Lanka and keep Sri Lanka in the trap of poverty.
Spokesperson and the Chief of Political Section of Chinese Embassy Mr. Luo Chong, made remarks on the so-called “Debt Trap” allegations and some other related issues during an media briefing at the Chinese Embassy yesterday (5).
During the questioned answer session, Mr Chong stressed that Sri Lanka is indeed trapped, not by Chinese debt but by the lack of development due to historical and external reasons.
“What China has been doing is to provide all kinds of support including financial assistance to help Sri Lanka pulling out of the trap, while some foreign forces without willingness or abilities to help, are fabricating lies only trying to obstruct the joint development of China and other developing countries including Sri Lanka and keep Sri Lanka in the trap of poverty.”
The spokesperson said that Chinese loans are not the main part of Sri Lanka’s foreign debt. According to the Annual Report 2017 of the Central Bank of Sri Lanka, the total external debt of the Island country counts US dollars 51.824 billion, among which outstanding Chinese loans takes up only about 10.6% with the amount of USD 5.5 billion.
“Besides, 61.5% the Chinese loans (USD 3.38 billion) are concessional ones with a much lower interest rate than the international market. The commercial loans from China are also negotiated at an appropriate rate by the two sides according to the then prevailing international market.”
He said the so-called “Debt Trap” is a false proposition created by the Western media, with a direct attempt to obstruct the joint development of China and other developing countries including Sri Lanka, while the fundamental purpose is to maintain the Western world’s “traditional” superior position in the international and regional politics and economics.
“China will continue to provide selfless support including much-needed funds for the development of Sri Lanka, and would like to work together with Sri Lankan governments, business community, media and the general public to eliminate interference, strengthen confidence, and jointly promote the pragmatic cooperation for the benefit of the two countries and the two peoples.”
Ms. An Xin, Deputy Managing Director of Representative Office of China Harbour Engineering Company Ltd and Mr. Tissa Wickramasinhe, COO of Hambantota International Port Group Ltd (HIPG) were also present for the briefing.
