Visit of highpowered Chinese delegation

It is reported at the discussions held with President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, the Chinese delegation has agreed to support President’s development objectives envisaged in his Presidential Election manifesto and take bilateral relations with Sri Lanka to a higher level. A very generous gesture indeed but it should be on financially viable projects and not like those, which China had funded, turning out to be white elephants, names of which I refrain from mentioning.

In reality such funding on non-profitable ventures have made countries poorer. Hence China should change its system or attitudes in granting loans. As done by International Lending Agencies, like World Bank, International IMF, ADB etc, China too should independently carry out feasibility studies and advise the government to either modify or reject the project and also recommend fiscal measures for Sri Lanka to come out of the serious debt situation we are in.

China is more interested in funding non-viable projects as seen in Kenya and Zambia. Where failure to repay loans, China had taken over the projects to run by themselves, employing its own men

It would appear, China is more interested in funding non-viable projects as seen in Kenya and Zambia. Where failure to repay loans, China had taken over the projects to run by themselves, employing its own men. The other aspect which developing countries like ours have failed to notice or ignored is that while China funds projects, they undertake the construction, engaging their own labour and use their materials and machinery, paying themselves the entire loan and even the local contribution leaving us to repay the loan with interest, inclusive of any commissions paid as alleged. In short China provides employment to its own people and purchase materials and machinery on the loan. The funds provided do not circulate in this country, neither our labour - both skilled and unskilled are engaged in it.

It is encouraging our President had, at his Presidential Election campaign, pledged that he would not approve projects without feasibility studies and also their financial viability. It is suggested that when entering into contract, a clause be included that wherever possible our local men, professionals, skilled/unskilled labour are employed, thus providing employment to our men.

It is hoped, that this generous gesture extended by the high powered Chinese delegation is not a Trojan Horse, with ulterior motives, as today, there are foreign powers watching the intrusion of China in affairs in countries, especially, South East Asia to gain dominance.