China says it is not ‘becoming a supplier of political instability’

China has rejected claims that it was ‘becoming a supplier of political instability’ and sets a ‘debt-trap’ for Sri Lanka and other countries.

In response to an editorial of the Financial Times (London), Spokesman for the Chinese Embassy in the UK, Zeng Rong stated that “By 2017, China’s loans to Sri Lanka accounted for only about 10 per cent in Sri Lanka’s foreign debts, while Japan accounts for 12 per cent and the Asian Development Bank 14 per cent. It is not tenable to claim that China’s loans are causing problems to Sri Lanka.”

The statement also stated;

“I can’t agree with the comments in your editorial “Sri Lanka turmoil points to China’s increasing role” (November 16) that China is “becoming a supplier of political instability” and sets a “debttrap” for Sri Lanka and other countries.

China and Sri Lanka have long been friendly neighbours that always support each other in their major and core interests. The co-operation between the two countries is win-win and mutually beneficial. Such co-operation has delivered tangible benefit to the people of Sri Lanka. By the end of 2017, Chinese companies had completed more than $15bn worth of infrastructure projects in Sri Lanka in transportation, water, electricity, ports and other fields, giving a strong boost to its economic development.

The Puttalam Power Station provided about 40 per cent of the nation’s electricity supply, reducing the power price by 25 per cent.