China to encourage IMF to help SL

The above encouraging news item says, as a major shareholder China is willing to consider Sri Lanka’s difficulties and reach agreements to resolve the present economic crisis and support Sri Lanka’s decision to work with IMF in restructuring the debt.

It should be said that major part of our debt we owe is to China as it had funded and undertaken their construction in most of the unproductive projects without any feasibility studies and also the ability to repay the loans as done by other International Lending Organizations such as IMR, WB, ADB, JAICA. On the other hand, China cannot be blamed, as it should have been the responsibility of the borrower to look to the viability of such projects. That said, China being the lender has also undertaken the construction engaging its own labour, materials and machinery thus utilizing the entire loan plus the local contribution to these projects.

Hence it is clear China has found employment for its men and also the sale of Chinese materials and machinery, leaving us to pay back the loan which China had used with interest. It should also be stated the bloated estimated cost includes commissions payable to interested parties, which will also be recovered when repayment is done. It is suggested, China would be magnanimous when restructuring the repayment to set aside the interest as wages paid to Chinese labour and only recover the loan. That will be a great relief.

G.a.d.sirimal BORALESGAMUWA