No plans to sell Hambanthota Port to China, only leasing - PM

[ohmrlobalobayeh]

* No plans to sell Hambanthota Port to China, only leasing - PM
Thu, Apr 6, 2017, 12:00 pm SL Time, ColomboPage News Desk, Sri Lanka.

Apr 06, Colombo: Sri Lanka's Prime Minister Ranil Wickremesinghe says no plan has been drawn to sell the Hambantota harbor to a Chinese company.

"There is no preliminary draft regarding handing over the Hambanthota Port to anyone," the Premier said addressing the parliament Wednesday. He said the discussions are now on going to reach an agreement to operate the southern Port as a China-Sri Lanka joint venture.

The Prime Minister said during his visit to China he conveyed to the Chinese government that Sri Lanka cannot pay the loans taken by the previous government for the port and requested the loan to be written-off. The Chinese government has then suggested a China-Sri Lanka joint venture to operate the Southern Port, the Premier explained.

The Premier revealed these facts in response to a question raised by parliamentarian Dullas Alahapperuma.

He said the former Rajapakse regime had given the Hambantota harbor project outright to the Chinese company. However, there is a new agreement between the two governments now and the government has taken it back under a leasing system.

He said the government has to pay back $3.6 billion of debt taken during the previous regime and the government's aim is to provide relief to the people by minimizing the debt burden.

The Prime Minister also pointed out that the government agency that signed the agreement with the Chinese company was the Port Authority while it Urban Development Authority should be the responsible authority. "We need to appoint another committee to find why the Port Authority signed the agreement," he said.

The Premier promised to submit a report to the House on the agreement with China after reaching a final decision.

http://www.colombopage.com/archive_17A/Apr06_1491460218CH.php

he conveyed to the Chinese government that Sri Lanka cannot pay the loans taken by the previous government for the port and requested the loan to be written-off.

i got to admit i laughed really hard when i read this. It's like placing a showhand bet at the casino table- and then telling the banker, after losing it all- 'I was just joking about my bet- can i take my chips?'

Sri lanka: im not gonna repay u the money, because the previous government did the borrowing, not us. Please forget about what we owe you.

Wtf? is there such a thing? this is unbecoming of a sovereign nation.

Friends are friends. Money is money. China is not a charity. More ever, the money in question is an astronomical sum- more than 8000000000 dollars.

During feudal or colonial times, wars would have been triggered to recover debts via various means due to debtor nation's sovereign liquidity reasons.

CHina has no reasons to do so, nor does it have any intentions of 'colonising' sri lanka. It only wants a port(not even a city, let alone a state or province). Furthermore, any Chinese presence will only add to Sri Lanka's security- not insecurity.

 

[Quibbler]

* No plans to sell Hambanthota Port to China, only leasing - PM
Thu, Apr 6, 2017, 12:00 pm SL Time, ColomboPage News Desk, Sri Lanka.

Apr 06, Colombo: Sri Lanka's Prime Minister Ranil Wickremesinghe says no plan has been drawn to sell the Hambantota harbor to a Chinese company.

"There is no preliminary draft regarding handing over the Hambanthota Port to anyone," the Premier said addressing the parliament Wednesday. He said the discussions are now on going to reach an agreement to operate the southern Port as a China-Sri Lanka joint venture.

The Prime Minister said during his visit to China he conveyed to the Chinese government that Sri Lanka cannot pay the loans taken by the previous government for the port and requested the loan to be written-off. The Chinese government has then suggested a China-Sri Lanka joint venture to operate the Southern Port, the Premier explained.

The Premier revealed these facts in response to a question raised by parliamentarian Dullas Alahapperuma.

He said the former Rajapakse regime had given the Hambantota harbor project outright to the Chinese company. However, there is a new agreement between the two governments now and the government has taken it back under a leasing system.

He said the government has to pay back $3.6 billion of debt taken during the previous regime and the government's aim is to provide relief to the people by minimizing the debt burden.

The Prime Minister also pointed out that the government agency that signed the agreement with the Chinese company was the Port Authority while it Urban Development Authority should be the responsible authority. "We need to appoint another committee to find why the Port Authority signed the agreement," he said.

The Premier promised to submit a report to the House on the agreement with China after reaching a final decision.

http://www.colombopage.com/archive_17A/Apr06_1491460218CH.php




i got to admit i laughed really hard when i read this. It's like placing a showhand bet at the casino table- and then telling the banker, after losing it all- 'I was just joking about my bet- can i take my chips?'

Sri lanka: im not gonna repay u the money, because the previous government did the borrowing, not us. Please forget about what we owe you.

Wtf? is there such a thing? this is unbecoming of a sovereign nation.

Friends are friends. Money is money. China is not a charity. More ever, the money in question is an astronomical sum- more than 8000000000 dollars.

During feudal or colonial times, wars would have been triggered to recover debts via various means due to debtor nation's sovereign liquidity reasons.

CHina has no reasons to do so, nor does it have any intentions of 'colonising' sri lanka. It only wants a port(not even a city, let alone a state or province). Furthermore, any Chinese presence will only add to Sri Lanka's security- not insecurity.

You made an investment. It went sour. You lose your investment. That is the very basic downside of a buisness deal. Sri lanka does not owe their soul to you. They can do whatever they want. Every investment carries a risk and yours defaulted.

Sri Lanka can do however it wishes. You have no authority in Sri Lanka except goodwill. Respect that good will.

 

[Nilgiri]

* No plans to sell Hambanthota Port to China, only leasing - PM
Thu, Apr 6, 2017, 12:00 pm SL Time, ColomboPage News Desk, Sri Lanka.

Apr 06, Colombo: Sri Lanka's Prime Minister Ranil Wickremesinghe says no plan has been drawn to sell the Hambantota harbor to a Chinese company.

"There is no preliminary draft regarding handing over the Hambanthota Port to anyone," the Premier said addressing the parliament Wednesday. He said the discussions are now on going to reach an agreement to operate the southern Port as a China-Sri Lanka joint venture.

The Prime Minister said during his visit to China he conveyed to the Chinese government that Sri Lanka cannot pay the loans taken by the previous government for the port and requested the loan to be written-off. The Chinese government has then suggested a China-Sri Lanka joint venture to operate the Southern Port, the Premier explained.

The Premier revealed these facts in response to a question raised by parliamentarian Dullas Alahapperuma.

He said the former Rajapakse regime had given the Hambantota harbor project outright to the Chinese company. However, there is a new agreement between the two governments now and the government has taken it back under a leasing system.

He said the government has to pay back $3.6 billion of debt taken during the previous regime and the government's aim is to provide relief to the people by minimizing the debt burden.

The Prime Minister also pointed out that the government agency that signed the agreement with the Chinese company was the Port Authority while it Urban Development Authority should be the responsible authority. "We need to appoint another committee to find why the Port Authority signed the agreement," he said.

The Premier promised to submit a report to the House on the agreement with China after reaching a final decision.

http://www.colombopage.com/archive_17A/Apr06_1491460218CH.php




i got to admit i laughed really hard when i read this. It's like placing a showhand bet at the casino table- and then telling the banker, after losing it all- 'I was just joking about my bet- can i take my chips?'

Sri lanka: im not gonna repay u the money, because the previous government did the borrowing, not us. Please forget about what we owe you.

Wtf? is there such a thing? this is unbecoming of a sovereign nation.

Friends are friends. Money is money. China is not a charity. More ever, the money in question is an astronomical sum- more than 8000000000 dollars.

During feudal or colonial times, wars would have been triggered to recover debts via various means due to debtor nation's sovereign liquidity reasons.

CHina has no reasons to do so, nor does it have any intentions of 'colonising' sri lanka. It only wants a port(not even a city, let alone a state or province). Furthermore, any Chinese presence will only add to Sri Lanka's security- not insecurity.

Next time don't be so eager to fund white elephant projects on personal whims of whatever leader....but look at underlying economic sustainability to ground it on and base loans and project scale strictly according to that....and expand in future as needed.

Sri Lanka is well within its right to finance this on its own terms (given you have committed everything so early and in one installment), its their sovereignty in the end. So negotiate with them and find a mutually acceptable solution.

 

[ohmrlobalobayeh]

You made an investment. It went sour. You lose your investment. That is the very basic downside of a buisness deal. Sri lanka does not owe their soul to you. They can do whatever they want. Every investment carries a risk and yours defaulted.

Sri Lanka can do however it wishes. You have no authority in Sri Lanka except goodwill. Respect that good will.

do u even know what is the difference between a loan and an investment? An investment carries a risk that the invested resource may never be recovered(e.g equity risk, currency risk, interest rate risk). Thus, full responisibility is on the investor.

A loan is given by the lender based on the agreement that the loaned resource will be returned, in 1 way or another- usually with additional returns(e.g interest).

Sri lanka borrowed the money for its own projects. China merely acted as a lender and loan them the funds. where did the majority of those money went is every1's guess- most likely some politician's pocket. Seriosuly, please read the article carefully.

Next time don't be so eager to fund white elephant projects on personal whims of whatever leader....but look at underlying economic sustainability to ground it on and base loans and project scale strictly according to that....and expand in future as needed.

Sri Lanka is well within its right to finance this on its own terms (given you have committed everything so early and in one installment), its their sovereignty in the end. So negotiate with them and find a mutually acceptable solution.

haha yaya tell that to shortsighted chinese leaders who probably didnt foresaw this coming when they decided to loan them the money. you're probably smarter than them.

haha thanks.

 

[Aasimkhan]

You made an investment. It went sour. You lose your investment. That is the very basic downside of a buisness deal. Sri lanka does not owe their soul to you. They can do whatever they want. Every investment carries a risk and yours defaulted.

Sri Lanka can do however it wishes. You have no authority in Sri Lanka except goodwill. Respect that good will.

Beggar cant be choosers, China has a right to get its money back (with interest) and may use any method to get it back. They dont own the soul but they can own the land in return, fair enough.

 

[Quibbler]

Beggar cant be choosers, China has a right to get its money back (with interest) and may use any method to get it back. They dont own the soul but they can own the land in return, fair enough.

Maybe they can in pakistan. And most probably they will. But on topic China holds no sway in Sri Lanka but just good will. And good will is even harder to earn.

The post was somewhat unclear are you suggesting millitary action, if in case goodwill fails?

 

[Quibbler]

do u even know what is a loan and a debt? An investment carries a risk that the invested resource may never be recovered(e.g equity risk, currency risk, interest rate risk). Sri lanka borrowed the money for its own projects. China merely acted as a lender and loan them the funds. where did the majority of those money went is every1's guess- most likely some politician's pocket.



haha yaya tell that to shortsighted Chinese leaders who probably didn't foresaw this coming when they decided to loan them the money. you're probably smarter than them.

haha thanks.

You do realize debt interest rates vary, according to risk. i e high risk high interest and low risk low interest. In simple terms debt factors in cases where principal might not be recovered and increases the interest rates accordingly to make it profitable over large sets.

Either you miscalculated the risk or if not then this might be a case where you end up losing your principal. Happens with many banks. That is what write offs are for.

 

[ohmrlobalobayeh]

You do realize debt interest rates vary, according to risk. i e high risk high interest and low risk low interest. In simple terms debt factors in cases where principal might not be recovered and increases the interest rates accordingly to make it profitable over large sets.

Either you miscalculated the risk or if not then this might be a case where you end up losing your principal. Happens with many banks. That is what write offs are for.

Sri Lanka cannot pay the loans taken

He said the government has to pay back $3.6 billion of debt taken

The Lankan PM already stated it was a loan/debt. An investment is not a debt- the investor carries the willing burden of knowing the investment may never be recovered- that's the fundamental difference between a loan and an investment. Gambling is a form of investment- u pool in money willingly- knowing that u might lose it and can have no1 to blame for your potential loss.

Write-offs are based on the lender's goodwill- not the borrower's. If the lender is generous, he might write off the debt owed(aka a https://en.wikipedia.org/wiki/Bad_debt ).u are giving the impression that you think it's the opposite( the borrower doesnt feel happy paying back the loan- so he thinks it's his right to demand a write-off at anytime).

Please dont tell me you do not even understand this basic book-keeping concept(u dont need a phd in accounting or finance)- because even my granny does.

Thus, i have no idea what u r babbling about.

Thanks.

 

[TopCat]

Now currently we are using Singapore for our 90 billion dollar trade. We can divert that to Srilanka and the port will be profitable over night. But whats we have in it?

 

[ohmrlobalobayeh]

Now currently we are using Singapore for our 90 billion dollar trade. We can divert that to Srilanka and the port will be profitable over night. But whats we have in it?

sorry what is your point?

 

[TopCat]

sorry what is your point?

Point is, port is highly profitable if south asia dont boycott it. Indians intentionally sanctioned it.

 

[ohmrlobalobayeh]

Point is, port is highly profitable if south asia dont boycott it. Indians intentionally sanctioned it.

freight traffic comes from the middle east, africa and beyond on the west, while the rest comes from the Asia-Pacific in the east- why would it be highly dependant on South Asia. If it's compeititive enough, ships would bypass India and flock to hambanthota that is right in the middle of their shipping lane . Sri Lanka is like a pearl right in the middle of the IOR

Hence, it's more like a mismanagement/inefficiency issue by Sri Lankans in managing their own port.

 

[Quibbler]

Point is, port is highly profitable if south asia dont boycott it. Indians intentionally sanctioned it.

sanctioned? No such news caelme to my knowledge.

 

[Species]

sanctioned? No such news caelme to my knowledge.

India's southern ports are direct competitors to Sri Lanka, so yes, there is an unofficial Indian sanction against it.

 

[Tshering22]

India's southern ports are direct competitors to Sri Lanka, so yes, there is an unofficial Indian sanction against it.

That way even Malaysia has direct competition from Singapore and yet, Singapore manages to out-do Malaysia in transshipment revenues.

Competition in business will always be there. The point is what can one entity offer others that the other one cannot.

From a neutral perspective, SL has the following advantages:

1- SL has relatively less congestion.
2- SL port authority is less bureaucratic than India.
3- Lower rate of taxes and the lack of provincial taxation system makes it easier for Lankans to attract more trans shipments.
4- Political neutrality of SL means that even Indian companies would be interested to send goods via SL to avoid the hassle of too much paperwork.
5- Less corruption. SL authorities are far less corrupt than Indian customs officials and they rank relatively well among SL countries in terms of better transparency.

So how Colombo plans to use its money, is upto them.

India has nothing to do with SL's decisions. Yes, we may not like it but it doesn't matter in business.

The port is made by China, in Lankan territory by the approval of their government. So it is upto SL.