Minister Amunugama says China highly professional in approach to development assistance

“China has been prompt and highly professional in the selection of projects and disbursements of funds which we have found to be lengthy and time consuming in other multi-lateral and bi-lateral relationships. Because Sri Lanka was able to mobilise Chinese support in time it has been able to overcome the recent escalation of prices and inability to mobilise funding support which is becoming more apparent day by day,” said Minister Dr. Sarath Amunugama while addressing an Economic Forum on the ‘Belt and Road Initiative’ held in Chengdu, China last week. 

He added that however, it must be pointed out that most developing countries have increased their debt burden in relation to international multi-lateral and bi-lateral lenders. China has played a positive role in suggesting a conversion of debt to equity in many of the projects that were launched with Chinese assistance.

The future will therefore be more complex in the realisation of investment for infrastructural development. While the World Bank, ADB and AIIB have enhanced their lending capacity many borrowers are inhibited by the debt ceilings imposed either by the IMF or by their own budgetary constraints. Recent developments in the areas of trade and commerce, with the imposition of new tariffs and trade embargos, will finally affect the development effects of the poorer nations. I would like to suggest that we appoint a high level group of eminent persons to examine ways and means of overcoming their debt difficulties.

The Minister also said that Sri Lanka is strategically located in South Asia and is known as the ‘Pearl of the Orient’. President Shi Jing Ping at the inaugural meeting of the Belt and Road initiative was kind enough to say that “Sri Lanka is not only the pearl of the orient” but also the Pearl of the Belt and Road” co-operation.

Sri Lanka and China have had close and friendly relations since the establishment of the People’s Republic of China. We were the first country in South Asia to recognise the PRC established under Chairman Mao Tse Tung. Soon after that we entered into the Rice-Rubber pact with China even though many other countries wished to embargo and isolate China. Our two countries have never lost sight of such solidarity and Sri Lanka is grateful to China for its help in varying fields, especially in infrastructure development.

China is Sri Lanka’s major bilateral donor partner. China has provided funds and expertise for many crucial infrastructural projects in my country.

To name a few of those important projects, China financed and constructed a new Harbour in Hambantota, a new international Airport in Mattala, the new Port City of Colombo where approximately 300 hectares of land is reclaimed from the sea, a 600 megawatt Coal Power Plant in Norochcholai and several super highways which connect all parts of the country. Some super highways, especially the new highway to Kandy, is even now under construction. Special mention must be made of the extension of the road and Railway from Colombo to Hambantota. All the more reason then for all the developing countries to act together, improve their infrastructure and productivity and find new and efficient means of utilising their natural and human resources. The “Belt and Road initiative” helps us with its emphasis on international solidarity, inter connectivity and the best uses of our natural resources. At a time of growing instability and isolationism the B & R initiative tells us that all can win and no one should be left behind. We in Sri Lanka have benefitted from that initiative and would like to join all our fellow nations in helping the B & R initiative to grow for the benefit of all mankind, he said.