Lanka promises port city project will resume after problems “sorted”: China

China’s President Xi Jinping shows the way to President Maithripala Sirisena at the ceremony held yesterday to welcome the latter at the Great Hall of the People in Beijing – Reuters.

 

 

BEIJING (Reuters): China said on Thursday that visiting President Maithripala Sirisena had promised work would resume on a controversial Chinese-backed port development in Colombo that his administration had earlier suspended.
Citing a lack of Government approvals, Sri Lanka halted the $1.4 billion Port City project, straining ties with its biggest investor. China defends the project, saying it is in line with local laws and any cancellation would deter foreign investors.
President Sirisena told Chinese President Xi Jinping that work would resume after problems are “sorted out”, a Chinese Foreign Ministry official told reporters on the sidelines of visit.

“He (Sirisena) stressed that what happened around the Port City in Colombo is rather temporary, and he said the problem does not lie with the Chinese side and hopes to continue with the project after things are sorted out,” said Liu Jianchao, Assistant Minister of Foreign Affairs.
China has poured millions of dollars into infrastructure in Sri Lanka since the end of a 26-year civil war in 2009, when Colombo was largely shunned by Western investors because of its human rights record.
Sirisena has vowed to reconsider deals between China and his predecessor Mahinda Rajapaksa, saying they were not transparent enough.
China’s ties with Sri Lanka, as well as its growing influence in the Indian Ocean, have elicited alarm from India, which has traditionally held sway with Colombo.
Sirisena’s Government also aims to renegotiate terms of about $5 billion in Chinese loans. China has said in the past that the terms of the loans are reasonable and in line with other countries.
Liu said the two Presidents had not “gone that far” in discussing any potential renegotiation of interest rates on the loans.
He added that China hopes to strengthen defence ties between the two countries, saying the presidents discussed cooperation in training military personnel and providing “military equipment”.
India voiced concern in November when Rajapaksa’s Government allowed a Chinese submarine and warship to dock in Colombo, seven weeks after another submarine called at the same port.
Foreign Minister Mangala Samaraweera said in February he did not anticipate any more visits by Chinese submarines, leading analysts to suggest Sirisena’s administration is approaching military ties with Beijing more warily than his predecessor.
Liu added that it is possible that the China-led Asian Infrastructure Investment Bank (AIIB), which is expected to start operations by the end of the year and has drawn a growing list of countries, could be a source of funding for Sri Lankan infrastructure projects, but that the matter would have to be discussed with other members of the bank once it is established.

 

 

 

President Sirisena completes successful state visit to China

 

 

 

President Sirisena completes successful state visit to China

 

• Five MOUs signed for cooperation for special aid in public health, development of water treatment and technologies in kidney disease affected areas, R&D of the coconut industry, and refurbishment of the Superior Courts 
• China offers 2000 training opportunities for young scientists from Sri Lanka in the next five years
• Two sides agree to convene the third round of negotiations on the FTA in the near future
• President Sirisena welcomes China’s expanding FDI portfolio in Sri Lanka and calls for more

China offers Sri Lanka olive branch and warnings     Beijing (AFP): President Xi Jinping worked to mend relations with Sri Lanka on Thursday as Chinese State-run media warned the country’s new Government against shutting off billions in investments from Beijing. President Maithripala Sirisena is on his first State visit to Beijing since taking office in January and is working to renegotiate more than $5.3 billion-worth of Chinese deals signed by his predecessor. He has already suspended construction work on a major Chinese-funded “port city” commissioned by his predecessor Mahinda Rajapaksa, who relied heavily on China to rebuild the country’s infrastructure during his decade in power. At the Great Hall of the People in Beijing Xi spoke of “a new era in the traditional friendship between China and Sri Lanka”, telling Sirisena: “Mr. President, you are an old friend of the Chinese people.” China wants to “push forward, genuinely helping each other in our strategic partnership”. For his part Sirisena recalled his first trip to China in 1983, “at the invitation of the Chinese Communist Party”. After the leaders’ meeting, Chinese Assistant Foreign Minister Liu Jianchao said both countries were committed to improving economic ties. Sri Lanka has complained that it is paying too much interest on the Chinese loans funding its infrastructure development. The $1.4 billion “port city” land reclamation scheme in Colombo suspended by Sirisena was also considered a security risk by neighbouring India. Liu said Sirisena described issues around the port city scheme as “rather temporary”. “He said the problem does not lie with the Chinese side” and that he hoped the project could continue “after things are sorted out”, he added. Sirisena’s remarks could not be immediately confirmed and Chinese officials could be working to downplay the port review. China has said any disruptions to the project will spook foreign investors and an op-ed in the Global Times, a paper affiliated with the Communist Party mouthpiece People’s Daily, reminded Sirisena that “Sri Lanka needs foreign investment more than ever”. “A consistent policy is crucial for attracting foreign investment,” wrote Lan Jianxue, of the China Institute of International Studies. “Sri Lanka’s strategic goals will be better guaranteed if Colombo can integrate them with China-backed projects.” Sirisena has also ordered a review of other Beijing-financed projects and loans amid allegations of corruption. Sirisena made India – rather than China – his first foreign trip after winning elections in January, seeking to rebuild ties with Delhi. India was reportedly furious after Chinese submarines were allowed to dock in Colombo last year when Rajapaksa was still in power. Beijing has been accused of seeking to develop facilities around the Indian Ocean in a “string of pearls” strategy to counter the rise of rival India and secure its own economic interests.