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Monday June 3rd, 2024

Sri Lanka ate the Chinese chicken instead of collecting eggs: Academic

The Chinese built Colombo Port City is being termed the ‘Gateway to South Asia’. Pic by Amitha Thennakoon.

ECONOMYNEXT – Sri Lanka has not used Chinese debt appropriately to grow the economy after the end of the civil war, akin to eating a chicken instead of allowing it to lay eggs, a former diplomat cum academic said.

“The Chinese approach is giving the chicken to you and letting it lay eggs,” Institute of International Affairs Director Yiwei Wang said in Colombo on Monday.

Speaking at a Ceylon Chamber of Commerce forum on the Belt and Road Initiative, he said China intended for Sri Lanka to use the debt to develop itself.

However, after the end of the civil war, the government kept borrowing without creating strong economic growth, getting Sri Lanka stuck in endless debt, Wang said.

“When the economy is not growing you can’t pay it. So, the debt grows more and more. It is endless.”

Wang said the Chinese government has invested 90 billion rupees in Sri Lanka over the past six years.

Many investments come through Chinese state-owned enterprises, although some of the largest to build a port, airport and a convention centre in the Southern coastal town of Hambantota, had been made much earlier.

An AidData and Asian Society Policy Institute study titled ‘Silk Road Diplomacy’ said Sri Lanka has been the third-highest recipient of Chinese investments in Central and South Asia totalling 12.7 billion US dollars.

Pakistan was leading with 38.43 billion US dollars, followed by Kazakhstan with 32.87 billion US dollars.

Wang said China’s approach to financing is fundamentally different from the west.

“The western approach, which we have seen in Africa and Sri Lanka, is like giving you the chicken and you eat the chicken as a chicken soup. That way you will be on huge debt,” he said.

He said China did not trap Sri Lanka in debt.

“Many people talk about the debt. Yes, even China bought money in the beginning, from the Asian Development Bank. A huge amount of money. There is no trap.”  Wang said.

“If it is a trap, then 137 countries should be in that trap now.”

The Belt and Road Initiative (BRI) is a global development strategy adopted by the Chinese government in 2013 involving infrastructure development and investments in 152 countries and international organizations in Asia, Europe, Africa, the Middle East, and the US.

Jayanath Colombage, additional secretary (foreign affairs) to the President,  too backed Wang, saying Sri Lanka is in a debt trap not because of China but due to a poor economy.

“We have mismanaged our economy. We did not make the use of money we borrowed. And we don’t want to blame somebody else for that.” Colombage said. (Colombo/Jan28/2020) 

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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