Colombo, September 1 (newsin.asia): Responding to questions from the media about China’s position on restructuring debts vis-à-vis Sri Lanka, the Chinese embassy here said on Thursday that in April this year Chinese financial institutions reached out to the Sri Lankan side and expressed their readiness to find a proper way to handle the matured debts related to China and help Sri Lanka overcome the current difficulties. It hoped that Sri Lanka will work actively with China in a similar spirit and work out a feasible solution expeditiously.
“As a traditional friendly neighbor of Sri Lanka and a major shareholder of the International Monetary Fund, China has been always encouraging the IMF and other international financial institutions to continue to play a positive role in supporting Sri Lanka’s response to current difficulties and efforts to ease debt burden and realize sustainable development. As to the bilateral financial cooperation, shortly after the Sri Lankan government announced to suspend international debt payments in April 2022, Chinese financial institutions reached out to the Sri Lankan side and expressed their readiness to find a proper way to handle the matured debts related to China and help Sri Lanka to overcome the current difficulties. We hope Sri Lanka will work actively with China in a similar spirit and work out a feasible solution expeditiously.”
Liu Jinsong’s meeting with Lankan envoy
On August 30, 2022, Director-General of the Department of Asian Affairs of the Foreign Ministry Liu Jinsong met with Ambassador of Sri Lanka to China Dr. Palitha Kohona. The two sides had a cordial and friendly exchange of views on China-Sri Lanka relations and international and regional issues of common concern.
Liu Jinsong said that in recent days, Mr. Ambassador frequently participated in activities and gave interviews to the media, actively promoted exchanges and cooperation between China and Sri Lanka in various fields, publicly refuted the so-called “China’s debt trap” claim, and safeguarded and promoted China-Sri Lanka relations and the traditional friendship. I appreciate this. As traditional friendly neighbors, China and Sri Lanka always promote the strategic cooperative partnership in the spirit of the Rubber-Rice Pact. China supports the efforts of the Sri Lankan government and various sectors to consolidate political stability for the long-term interests of the country, and create favorable conditions for overcoming difficulties, improving people’s well-being and reviving the economy. China will continue to provide assistance within its capacity for the Sri Lankan government and people.
Liu Jinsong said that what lies behind Sri Lanka’s current economic and financial crisis are not only structural problems of its economy and unexpected factors such as the pandemic, but also adverse spillover effects brought by the US Federal Reserve’s monetary policy. As the US media pointed out, a strong US dollar is hurting all countries except the US. According to the International Monetary Fund’s estimates, about 60 percent of low-income countries are at high risk of or already in debt distress, compared with 20 percent a decade ago. A strong US dollar harms low-income countries in three aspects: First, it increases financial pressure. Countries have to bear a heavier burden of foreign debts denominated in US dollars and rising costs of importing food, medicine and fuel, which will eventually lead to the depletion of foreign exchange reserves. Second, it encourages capital flight. When currencies depreciate against the US dollar, investors will begin to withdraw their capital and hide their money in safer places, thus further worsening countries’ financial problems. Third, it affects economic growth. Enterprises cannot afford the costs of imports that are needed for their operations, and even if demand remains strong, they cannot sell enough products, thus affecting economic output.
Liu Jinsong stressed that Speaker of the US House of Representatives Nancy Pelosi, in disregard of China’s stern warnings, insisted on visiting China’s Taiwan region recently. This is a gross violation of China’s sovereignty and territorial integrity and has a severe impact on the political foundation of China-US relations. It gravely undermines peace and stability across the Taiwan Strait, and seriously violates international law and the basic norms governing international relations. It has aroused strong indignation among the 1.4 billion-plus Chinese people, and China has every reason to respond with resolute countermeasures. China appreciates Sri Lanka’s firm support for the one-China principle. China and Sri Lanka will continue to firmly support each other on issues concerning respective core interests, and jointly uphold the principle of non-interference in internal affairs, which is a “golden rule” of international relations and the essential safeguard for developing countries to maintain security and independence.
Kohona introduced Sri Lanka’s efforts to restore social order, expressed gratitude for China’s invaluable support during Sri Lanka’s trying times, and said that Sri Lanka is keenly aware of the fact that only by realizing development can it truly get out of difficulties. Sri Lanka attaches great importance to China’s status and influence as a global super-large market and a major source of overseas investment, and looks forward to deepening mutually beneficial cooperation between the two countries in trade, investment, finance, tourism, education, people’s well-being and other fields, so as to help Sri Lanka tide over the difficulties and resume development.
Kohona stressed that Sri Lanka always adheres to the one-China principle and opposes acts that interfere in other countries’ internal affairs. Currently, some countries politicize and weaponize human rights issues to exert pressure on other countries. Sri Lanka is ready to work with China to strengthen high-level strategic coordination in bilateral and multilateral fields, safeguard legitimate rights and interests of the two countries and the vast developing countries, and promote greater democracy in international relations.
Chinese donations to Sri Lankan people
1) 1,000 underprivileged #SriLankan families from different districts & ethnicities have received much-needed dry rations packs donated by #China Friendship Foundation for Peace and Development. We thank the Foundation and its partner ????Journalists Forum for their timely support. Phase 1 of the donation has been completed from 26-28 August. Phase 2-4 are scheduled in the coming week.
2) #Chinese NGO ‘Pundarika Charity’ has donated 200K Yuan (apx LKR 10.5 million) worth of food packs to #SriLanka disadvantaged groups. The first batch of 500 packs were distributed today (31/8) in the sacred Gangaramaya Temple, Colombo.
3) Today (1/9), a Chinese manager of M/s New Silkroad Foodstuff, a ?? private company in Mannar, Northern Province ??, visited the grannies of the Shanthom Home for the Elders and brought them boxes of flour, rice, sugar, milk powder & fish-cans for daily use.
China’s rapid development inspires Sri Lanka out of predicament: Sri Lankan Ambassador
China’s rapid development inspires Sri Lanka out of predicament, Sri Lankan Ambassador Dr.Palitha Kohona told Global Times.
There are lots of posters pinned everywhere at the Embassy of Sri Lanka in China, including along the fence outside highlighting significant milestones in the long-abiding friendship at the 65th anniversary of the establishment of diplomatic ties between China and Sri Lanka this year; several staff members busied themselves preparing the ambassador’s recommended Sri Lankan Ceylon Black Tea and coconut water for the livestream session of upcoming 2022 China International Fair for Trade in Services held in Beijing.
There are lots of posters pinned everywhere at the Embassy of Sri Lanka in China, including along the fence outside highlighting significant milestones in the long-abiding friendship at the 65th anniversary of the establishment of diplomatic ties between China and Sri Lanka this year; several staff members busied themselves preparing the ambassador’s recommended Sri Lankan Ceylon Black Tea and coconut water for the livestream session of upcoming 2022 China International Fair for Trade in Services held in Beijing.
“In the last decade, China has developed rapidly and has become the biggest source of foreign direct investment and the second biggest economy in the world, during which time, Sri Lanka’s bilateral relations with China have expanded substantially and have prospered. Today, we hope that we can use these bonds to advance Sri Lanka’s development,” Sri Lanka’s Ambassador to China, Palitha Kohona, told the Global Times in an exclusive interview.
Kohona noted that over the last 65 years, Sri Lanka and China have lent mutual understanding and support to each other, maintaining a close friendship and seeking the common goal of development. Since the start of the COVID-19 global pandemic, the two sides have adhered to the spirit of mutual assistance, jointly fighting the pandemic. During the economic crisis confronting Sri Lanka, China has provided emergency humanitarian assistance, further reinforcing the historically close bonds.
“Sri Lanka-China relationship enjoys a time-honored history. Most recently, from the Rubber-Rice Pact, Sri Lanka and China have provided support and assistance to each other during many important periods of each other’s national development and have been reliable strategic partners. This relationship can be strengthened further in the future,” Kohona said.
According to Kohona’s observations, official and civil interaction between Sri Lanka and China over the last decade has covered a range of activities and projects in both countries, and both populations entertain a positive impression of each other.
“China’s Belt and Road Initiative and China-funded projects have made important contributions to Sri Lanka’s economic development. Earlier, I was at the Tsinghua University and found that there are many students from Sri Lanka who hope to go back and work in Chinese companies operating in Sri Lanka,” Kohona said.
Kohona also mentioned that China has been a strong advocate of globalization. Sri Lanka has benefited from and firmly supports globalization.
China’s campaign to consolidate globalization has been welcomed. Globalization has created wealth and prosperity. Many developing countries have been able to lift vast numbers of their populations out of poverty because of globalization, because globalized connectivity allows countries’ exports to reach more lucrative markets easier, Kohona pointed out.
“We applaud China for its extraordinary achievement in lifting its population from absolute poverty,” he said.
Kohona said he has visited China over 18 times over the last few years, and seen China transform from poverty to prosperity.
“Today, China has fabulous modern cities, a very impressive highway network, the most impressive high speed rail network in the world and eye-popping technology. And most cities are very green,” Kohona noted, adding “What China has done under the dedicated leadership for the Communist Party of China (CPC) is remarkable. It’s unique. No other country has achieved the goal of eradicating extreme poverty at any time in history, while China has done this impressively.”
Kohona believed one of the reasons for such a dramatic shift in China is that the CPC has adopted very clear people-centric policies. “It’s not focused toward a specific group. It’s a development that takes into account the average person. I think the firm and very carefully calibrated policy that China has adopted could be something that we can learn from. But China’s path is its own, its own model toward development,” he said.
Kohona said Sri Lanka also wants to eliminate extreme poverty, creating a better life, and ensuring a better living standard for its people.
Sri Lanka currently is facing a myriad of challenges, and has many lessons to learn from China, such as the country’s scientific education system and the government’s emphasis on nature conservation, the ambassador noted.
“All these have contributed, in my view, to making the remarkable and very impressive China of today. Sri Lanka has been inspired, but will have to find its own strengths and work on them to become a country like China in the future,” Kohona said.
END
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