China has been prompt and highly professional in the selection of projects and disbursements of funds which Sri Lanka has found to be lengthy and time consuming in other multi-lateral and bi-lateral relationships, said Minister Dr. Sarath Amunugama addressing an Economic Forum on the “Belt and Road Initiative” held in Chengdu, China last week.
“As a result Sri Lanka was able to mobilise Chinese support in time,” he said.
Dr Amunugama however said 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 realization 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 Xi Jinping 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.
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