Lanka ties up with Yunnan and Chongqing for multifarious economic development

The benefits of Sri Lanka’s foreign policy of neutrality was evident during the recent challenges faced on several fronts.

Although it was quite evident during the 30 years of conflict as many countries – Pakistan, China, Russia, United States, Israel and India – came to assist at different times, the success of Sri Lanka’s foreign policy became most prominent during the last three years of difficulties due to the pandemic and economic downturn.

In addition to government-to-government development assistance as well as investments, Sri Lanka is also receiving generous grants and development cooperation and investments in the second tier such as from the state governments of India and provincial governments of China.

Last week a high-level delegation headed by the Yunnan Provincial Federation of Industry & Commerce Chairman Gao Feng, who is also CPPCC Vice Chairman, held a discussion with Prime Minister Dinesh Gunawardena on the follow-up plans on trade and investment proposals emanated during the Prime Minister’s visit to Yunnan two months ago.

During the meeting, the high-level delegation of Chambers of Commerce and Industry and leading entrepreneurs of Yunnan held a detailed discussion on how to enhance trade and investment between Yunnan and Sri Lanka.

Yunnan’s keenness to have closer relations became evident from the visit of the Chamber head Gao Feng who, as CPPCC Vice Chairman, is responsible for all economic and trade and investment affairs concerning Yunnan.

During the discussions, trade, tourism, agriculture, technology and investments in solar and wind power were identified as potential areas for collaboration.

The Prime Minister said that the visit of the delegation would be useful to take forward the agreements reached during his visit to Yunnan in August 2023.

The Prime Minister visited the Yunnan Academy of Agriculture Sciences, Kunming International Flower Trade Centre and Auction, Yunnan Solar Power Station, Gushen Village Experimental Paddy Field, Errhai Ecological Corridor, Xiaguan Tuocha Tea Experimental Center and Three- Pagoda Chongsheng Temple in Dali in Yunnan Province. It was decided to cooperate in tea, paddy, and other crops, gem and jewellery and tourism.

Recently, Fisheries Minister Douglas Devananda announced that China pledged Rs.1500 million for the benefit of the fisheries sector in the North. This grant was given to mark the tenth anniversary of the Belt and Road Initiative (BRI), in which President Ranil Wickremesinghe was one of the heads of state to attend.

Minister Devananda said LKR 500 million will be for the construction of housing for fishermen and another LKR 500 million for the provision of fishing gear such as nets. The remaining LKR 500 million is meant for the provision of dry rations to the fisher families.

Another Chinese province helping Sri Lanka in the rural revitalization programme is Chongqing Province. In July this year Dr Yuan Jiajun, top official of the Chinese Communist Party in Chongqing, who is also a CPC Politbureau member, said that China would extend fullest cooperation by encouraging, large-scale investments in industrial and agricultural spheres.

He also agreed to provide experts on hybrid rice varieties and other food crops to Sri Lanka of which expertise has been developed by Chongqing-rich researchers.

“You have vast flat lands all over the country suitable for rice and other crops and we will extend assistance to increase harvest by several folds,” he said during his meeting with Prime Minister Dinesh Gunawardena.

The Prime Minister, pointing out that China is a great friend of Sri Lanka, thanked the Chinese side for providing strong support for the country’s economic and social development over the years.

The Prime Minister requested the delegation to share Chongqing’s experience of successfully alleviating poverty and ensuring food security by using hybrid rice and other food crops to increase production by several times.

Dr Yuan Jiajun assured every possible assistance to ensure speedy progress in poverty alleviation and food security. He said Chongqing could help Sri Lanka double its rice production by introducing hybrid rice varieties developed by China.

In addition to hybrid rice, Chongqing has also developed rice varieties that can be grown in dry zones with water shortages and also in saline lands near the seacoast, he said.

Earlier this week, Vice President of China Foundation for Rural Development Liu Wenkui offered his Foundation’s assistance to Sri Lanka’s poverty alleviation programme. He gave this assurance when he called on Prime Minister Dinesh Gunawardena.

The Prime Minister said China’s success in eradicating poverty, rural uplift and ensuring food security has been exemplary.

“I thank China for magnanimous contributions to the efforts of my country as well as other developing nations towards achieving food security,” he said.

He expressed appreciation for President Xi Jinping’s offer of continuous support to Sri Lanka when President Ranil Wickremesinghe’s visited Beijing last week.

Mr Liu Wenkui said his Foundation has expertise in rural development and it could assist Sri Lanka in its drive to increase rural productivity for the multiple goals of self-sufficiency, uplift of rural low-income families and increase in exports.

President Wickremesinghe, during his visit to Beijing, reaffirmed Sri Lanka’s commitment to the One-China principle. He reiterated that Sri Lanka supports the efforts by the Chinese government to safeguard its sovereignty and territorial integrity, and opposes any form of “Taiwan independence”.

He hailed China for firmly supporting Sri Lanka in upholding its independence, sovereignty and territorial integrity, and supporting the independent choice of development path that suits its national conditions.

The President emphasized that Sri Lanka, as an island nation, has the potential to attain a higher standing in the international arena by adopting a nonaligned foreign policy. The close development partnership with China must be viewed in terms of neutrality which aims to avoid reliance on or alignment with any regional power or a global power bloc.

Japan Maritime Self-Defense Force destroyer arrives at Trincomalee harbour.

Japan Maritime Self-Defense Force (JMSDF) destroyer AKEBONO (DD 108) arrived at the Trincomalee harbor on an official visit on Saturday (28).

Upon her arrival, the ship was welcomed by the Sri Lanka Navy following naval traditions.

The 150.5 m long destroyer serves in JMSDF and she is manned by 172 crew members.

During the ship’s stay, the crew will take part in several programs organized by the Sri Lanka Navy, to promote cooperation and goodwill between two navies.

The ship is scheduled to depart the island on 31st October. On her departure, she will take part in a PHOTOEX with a Sri Lanka Naval Ship off Trincomalee.

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Sumanthran calls for Sampanthan’s resignation

Tamil National Alliance (TNA) and ITAK MP, M.A. Sumanthiran has called for the resignation of the party’s leader, R. Sampanthan, citing his age and poor attendance.

Sumanthiran noted that in a parliamentary year which consists of 288 days, Sampanthan is only present 39 days. This translates to an attendance rate of only 13.6 percent. Sumanthiran slammed this as a waste of taxpayers’ money.

Sumanthiran maintains that he had requested Sampanthan resign a years ago when it had become event that his health was declining but the TNA leader refused citing his electoral mandate.

Sampanthan has faced criticism from the Tamil Families of the Disappeared in the past for his statements about those who were forcibly disappeared. Last December, marking 2,126 days of consecutive protest, Families of the Disappeared in Vavuniya slammed his statement during the All Party Conference (APC). He is reported to have said, “we know you killed all disappearances”.

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NARA gets permission for research with Shi Yan 6

The National Aquatic Resources Research and Development Agency (NARA) said permission was granted to conduct research with the Chinese geophysical scientific research vessel Shi Yan 6, which is docked at the Port of Colombo.

NARA Director General Dr. Kamal Tennakoon said permission was granted on Thursday (26) afternoon.

He said research teams will be dispatched for this purpose over the next few days.

Dr. Tennakoon said the research will study the impact of the ocean system on the regional climate including in Sri Lanka.

The crew said Sri Lankans have the opportunity to visit the Chinese research vessel Shi Yan 6 at the Colombo Port on Friday (27) as well.

The Chinese research vessel Shi Yan 6 made regional headlines after India expressed concern over the movements of the vessel on its journey to Sri Lanka.

However, the Chinese geophysical scientific research vessel Shi Yan 6 docked at the Port of Colombo on 25th October, as planned.

The Shi Yan 6 is berthed at the South Asia Gateway Terminals of the Port of Colombo.

The Shi Yan 6 is equipped with the latest and modern technology that can monitor the ocean bed, and it also comprises laboratories to test the samples obtained from the ocean floor.

Weighing 260 tonnes, the Shi Yan 6 can accommodate 60 people.

The Shi Yan 6 departed from Ghuangzhou in China on the 11th of September, and entered the Indian Ocean region on the 19th of September.

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Shi Yan 6: NARA awaits Foreign Min. greenlight to start research

In the wake of the Chinese research vessel Shi Yan 6 docking at the Colombo Port on Wednesday (25), the National Aquatic Resources Research and Development Agency (NARA) is awaiting Foreign Affairs Ministry approval to conduct research with the Chinese vessel.

Sources within the NARA told The Daily Morning yesterday (26) that the Ministry is yet to approve the request made by the NARA to allow the Shi Yan 6 to conduct research within the Sri Lankan Naval territory with their assistance. However, it was reported that the Foreign Affairs Ministry is still having discussions with the Ministry of Defence in this regard.

Meanwhile, NARA sources also said that the research territories and other crucial factors affiliated with the research are yet to be decided, and that most probably the decision will be followed by the Foreign Affairs and Defence Ministries’ approval for the research. Sources also said that the NARA was to further discuss these matters in the Board meeting which was scheduled to take place yesterday afternoon.

However, the Foreign Affairs Minister, President’s Counsel M.U.M. Ali Sabry said in a statement that the Chinese ship was given permission to dock only for replenishment at the Port of Colombo but that approval for any research purpose is yet to be granted. It was reported that the vessel had been expected to conduct research with Sri Lankan State institutions, but the Foreign Affairs Ministry Spokesperson confirmed that the permission was granted only for replenishment and that no research work would be carried out.

According to the Chinese television network China Global Television Network (CGTN), Shi Yan 6 is a geophysical scientific research vessel on an expeditionary voyage in the Eastern area of the Indian Ocean. Organised by the South China Sea Institute of Oceanology under the Chinese Academy of Sciences, the vessel is scheduled to operate at sea for 80 days, covering a range of more than 12,000 nautical miles (roughly 22,200 kilometres), the CGTN reported.

China has been trying to expand its influence in Sri Lanka, which is located on one of the world’s busiest shipping routes in what India considers part of its strategic backyard. Last year (2022), the Chinese state owned vessel Yuan Wang 5 docked at Hambantota in Southern Sri Lanka.

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Sri Lanka allows a Chinese research ship to dock as neighbouring India’s security concerns grow

A Chinese research ship docked at a Sri Lankan port on Wednesday, likely adding to neighboring India’s concerns about China’s growing influence in the Indian Ocean.

The arrival of the Shi Yan 6 follows last year’s visit by a Chinese naval vessel.

The latest ship was given permission to dock for replenishment at the port of Colombo, the Indian Ocean island’s main port, from Wednesday until Oct. 28, said foreign ministry spokesman Kapila Fonseka.

The vessel had been expected to conduct research with Sri Lankan state institutions, but Fonseka said permission was granted only for replenishment and no research work would be carried out.

“The particular permission is very clear,” he said.

According to Chinese television network CGTN, Shi Yan 6 is a geophysical scientific research vessel on an expeditionary voyage in the eastern area of the Indian Ocean.

Organized by the South China Sea Institute of Oceanology under the Chinese Academy of Sciences, the vessel is scheduled to operate at sea for 80 days, covering a range of more than 12,000 nautical miles (roughly 22,200 kilometres), CGTN reported.

China has been trying to expand its influence in Sri Lanka, which is located on one of the world’s busiest shipping routes in what India considers part of its strategic backyard.

Beijing was once widely seen as having an upper hand with its free-flowing loans and infrastructure investments. But Sri Lanka’s economic collapse last year provided an opportunity for India as New Delhi stepped in with massive financial and material assistance.

Two weeks ago, Sri Lanka reached an agreement with Export-Import Bank of China on key terms and principles for restructuring its debt, an important step toward unlocking a second installment of a $2.9 billion package from the International Monetary Fund aimed at helping the island nation from its dire economic crisis.

Sri Lanka declared bankruptcy in April 2022 with more than $83 billion in debt, more than half to foreign creditors. China accounts for about 10% of Sri Lanka’s loans, trailing Japan and the Asian Development Bank.

Sri Lanka borrowed heavily from China over the past decade for infrastructure projects including a seaport, airport and a city being built on reclaimed land. The projects failed to earn enough revenue to pay for the loans, and in 2017, Sri Lanka leased the seaport in Hambantota to China.

Last year, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka. There were fears in India that the vessel could be used to surveil the region.

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Sri Lanka debt restructuring: US insists on fairness, equal treatment

The United States has reinforced the need for fairness in Sri Lanka’s debt restructuring efforts, with Ambassador Julie Chung noting that equal and equitable treatment for all creditors is essential and that transparency from every party involved is crucial.

The US remains committed to an economic landscape that values fairness, transparency, integrity, and inclusivity, ensuring stability and growth in Sri Lanka, Chung said following a meeting with Central Bank Governor Nandalal Weerasinghe.

Chung tweeted Wednesday October 25 afternoon that she had extended her congratulations to Weerasinghe on the staff level agreement reached with the International Monetary Fund (IMF) on the first review of its 2.9 billion US dollar extended fund facility (EFF).

The diplomat said the agreement marked progress in Sri Lanka’s effort to secure the second tranche of the IMF loan.

“I reinforced the need for fairness in Sri Lanka’s debt restructuring: equal and equitable treatment for all creditors is essential. Transparency from every party involved is crucial,” she said.

The US ambassador’s remarks come after China’s EXIM Bank agreed on “key principles and indicative terms” to restructure 4.2 billion dollars in bilateral debt. China is Sri Lanka’s largest bilateral creditor, and Sri Lanka’s financial advisor for debt restructuring has assured the island nation’s authorities that China’s debt restructuring plan “is comparable” on the treatment.

China’s foreign ministry spokesman said a “tentative” agreement had been reached.

The IMF and other creditors are still waiting to see full details, according to reports.

“We will need some time to handle it,” State Minister of Finance Shehan Semasinghe told EconomyNext when asked if China had given a detailed debt restructuring plan to Sri Lankan authorities.

“But the only thing is [debt restructuring advisor] Lazard has assured that it is comparable in treatment. That is what the IMF also wants. The treatment to be shared with the other creditors,” he said.

Asked if comparability means equal treatment with the other creditors, Semasinghe said: “Equal treatment and comparability. That is what Lazard has informed us. It is our financial advisor. I cannot say anything beyond that.”

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Sri Lanka’s Colombo Port City Grants Authorization to Two Cryptocurrency Exchanges

Two cryptocurrency exchange platforms have been granted authorization to operate within the Port City Special Economic Zone. The Colombo Port City Economic Commission (CPCEC) issued these authorizations, marking a notable step in embracing emerging financial technologies.

The two authorized cryptocurrency exchange platforms are Bitazza International Ltd from Thailand and Scallop (Pvt) Ltd from the United Kingdom. These platforms have received the green light to establish their operations within the Colombo Port City, facilitating the exchange and trading of digital currencies.

This decision is expected to open doors for regional cryptocurrency exchanges, as both Bitazza International and Scallop look to establish their presence in the region. Their operations will cater to the growing interest in digital assets and cryptocurrency trading within the Colombo Port City.

The move aligns with the Port City’s commitment to fostering economic growth, innovation, and technological advancement. By allowing cryptocurrency exchanges to operate within the special economic zone, the CPCEC aims to position the Colombo Port City as a hub for financial technology and digital currency-related activities.

Nimal Lansa challenges errant Sri Lanka Podujana Peramuna MPs to defeat budget

Sri Lanka Podujana Peramuna (SLPP) legislator Nimal Lansa, who has reportedly been working on a new alliance backing President Ranil Wickremesinghe, has challenged detractors within the government to try and defeat the upcoming budget.

“What I have to say to [government MPs] Namal Rajapaksa and Sagara Kariyawasam is, if you are opposed to the budget, come and vote against it, defeat the government and go for a parliamentary election. We’re all prepared for that,” Lansa said, speaking to reporters.

“No matter how much they shout, they will not defeat the budget. If you can, accept my challenge and defeat it,” he said.

Lansa’s comments came in the wake of former sports minister Namal Rajapaksa, who sits in the government benches, criticised a controversial electricity tariff hike, which he said the public has blamed on the SLPP, the party led by his father and former president Mahinda Rajapaksa.

“On the one hand, electricity tariffs are going up, as are taxes and water tariffs. There is also talk of new taxes to be imposed. There are no measures being taken to control cost of living. It’s the SLPP that takes the blame,” he said.

“The budget is coming. We’re waiting to see what he proposes in the budget. With those proposals, we as a party shall take a decision,” he added.

SLPP general secretary Sagara Kariyawasam at a recent press briefing also lamented the blame heaped on the Rajapaksas for the electricity tariff hike.

His colleague MP Rohitha Abeygunawardean, meanwhile, said the SLPP has no intention of breaking up the government.

“We’re not going to break this up halfway through for funsies. We will raise both hands for any good thing the government does. We will stand up for whatever that is good in the budget. We do not, however, plan to support anything we see as wrong,” said Abeygunawardena.

“If you cannot do this, please go to the people. If somebody comes with Aladdin’s lamp and says he can quickly reduce tariffs, we can see about that,” he added.

A defeat of the budget effectively sees the dissolution of parliament, leading to a general election.

With the presidential election just a year away, the SLPP’s continued support for President Wickremesinghe remains up in the air. Lansa, a former confidante of SLPP national organiser Bail Rajapaksa, has reportedly switched allegiances to form a new alliance backing Wickremesinghe.

The SLPP has given mixed signals on which way the party will go and, at the time of writing, there is still no clarity on whether or not the party will field its own candidate.

Chinese research vessel ‘Shi Yan 6’ to reach Colombo today

The Chinese research ship ‘Shi Yan 6’ will make a port call in Sri Lanka today (Oct. 25), Foreign Affairs Minister Ali Sabry says.

Accordingly, the vessel, about which India remains concerned, is scheduled to dock at Colombo Harbour later today.

However, earlier this month, Minister Sabry had said Shi Yan 6 was given permission to dock here in November, despite China having sought a port call in October.

India’s concerns stemmed from the arrival of high-tech research ship Yuan Wang 5 in Colombo in August 2022.

The island nation’s neighbour on several occasions had expressed its security concerns over Shi Yan 6’s capability of mapping the ocean bed which is critical to anti-submarine operations of the Chinese navy.

In September 2023, Sabry told Indian media that the Chinese research vessel Shi Yan 6 was not given permission to make a port call in October, as negotiations were still on.

He also highlighted that India’s security concerns, which he said were ‘legitimate’, were ‘important’ for the island nation. The Chinese vessel Shi Yan 6 is expected to conduct research with the National Aquatic Resources Research & Development Agency (NARA).

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