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

[TaiShang]

On Hambantota, in my opinion it's a business positioning issue, as you said it's bunkering station, perhaps some planners (all parties from SL and CN) didn't get the numbers right. I believe the guys are trying to turnaround the situation, wish them good luck!

I also believe that there would be a settlement (like new terms on loan payment) instead of a write-off, which sounds very idiotic.

Like @eldarlmari says, China is not the biggest developing charity; loans are given on positive return or, at least, an equal payment back.

I am sure if SL government insists on a write-off, there would be legal ways to enforce a payment.

 

[Gibbs]

I am sure if SL government insists on a write-off, there would be legal ways to enforce a payment.

They're not, They're asking to swap debt for equity

 

[Shotgunner51]

They're not, They're asking to swap debt for equity

I just checked WSC again, 2015 data already available, here: http://www.worldshipping.org/about-the-industry/global-trade/top-50-world-container-ports . Colombo has risen by two spots to #28 in the world, volume increased to 5.19 million TEU, congrats! I still hold previous forecast that 2016 volume could reach 6 million TEU or more, ranking at world #25 or higher, let's see when WSC publishes new data.

In IOR, ASEAN ports on eastern side, Jebel Ali (Dubai) on western side and Colombo in the middle, these will continue to be the primary hubs.

Yes, on Hambantota, a debt-equity swap is one way out.

 

[Indika]

No one said it's for sale in the first place, Only the hysterical Indian media who shyts bricks whenever China is mentioned and those opportunistic Lankan politicians in the opposition said so

Issue is not about sale or business , its about port being used for military purpose (like chinese submarine visits).

 

[ohmrlobalobayeh]

I just checked WSC again, 2015 data already available, here: http://www.worldshipping.org/about-the-industry/global-trade/top-50-world-container-ports . Colombo has risen by two spots to #28 in the world, volume increased to 5.19 million TEU, congrats! I still hold previous forecast that 2016 volume could reach 6 million TEU or more, ranking at world #25 or higher, let's see when WSC publishes new data.

In IOR, ASEAN ports on eastern side, Jebel Ali (Dubai) on western side and Colombo in the middle, these will continue to be the primary hubs.

Yes, on Hambantota, a debt-equity swap is one way out.

Atually, assuming the article is accurate- i find that the Lankan PM' address on the debt issue to parliament is ridiculous.

A write-off is bestowed by the creditor at his own discretion- not demanded by the debtor.

Issue is not about sale or business , its about port being used for military purpose (like chinese submarine visits).

Chinese military presence with only add to Sri Lanka's security- not decrease it.

It's the cautious neighbour up north that is concerned, and everybody knows it.

 

[HeinzG]

Atually, assuming the article is accurate- i find that the Lankan PM' address on the debt issue to parliament is ridiculous.

A write-off is bestowed by the creditor at his own discretion- not demanded by the debtor.

Chinese military presence with only add to Sri Lanka's security- not decrease it.

It's the cautious neighbour up north that is concerned, and everybody knows it.

The current PM couldn't stand to develop the H'tota port to it's full capacity. He has came to power criticizing the port and many other allegations. Therefore his only saving grace is to sell the port and claim it was sold to reduce the debt burden.

This is rather unfortunate for the future of Sri Lanka. The port is the property of the people not the person who has built it in the first place.

The concept of sanctions being unofficial is contradictory in itself.

On topic, India has never actively vied to be a intermidiate port in Indian ocean. If it had such an aim, it woyld have done so. We have no problems developing ports. We have no lack of strategic location and funding. So claiming very basic innocent competition between adjacent port sanctions is naive.

A credible poster would have atleast backed his claim of something as big as 'sanctions' with atleast a link asserting the same.

Even I don't think that India has sanctioned H'tota port. India is the current number one transshipment source for Colombo port.

No one said it's for sale in the first place, Only the hysterical Indian media who shyts bricks whenever China is mentioned and those opportunistic Lankan politicians in the opposition said so

Sale or lease for 99 years. What is the different? It's as good as being sold.

 

[tonyget]

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?

Sovereign default has serious consequences.

https://en.wikipedia.org/wiki/Sovereign_default

It will damage a country's credit rating badly, which makes it borrow money in the future much more difficult, and no country is able to stop borrowing money. That's exactly why Greece, Mongolia, etc. still trying hard to squeeze some cash out to payback IMF loans even they are in economic turmoil now.

Countries as powerful as USA or Russia or any major developed countries don't default their debt, third world failed states sometimes do.

More importantly, unless SL wants to cut ties with China completely (which is highly unlikely), they cannot just simply default the Chinese debt since they still needs China's assistance in the future.

 

[samsara]

...Sale or lease for 99 years. What is the different? It's as good as being sold.

OF COURSE it's quite different IF it's the case.

Sale = permanent transfer of ownership rights
Lease 99 yrs = just renting out for 99 years (sound so remotely distant for individuals; but for a nation, it's just a blink of history)

Anyhow, IF it's true and IF majority of LK has the objection to such lease (if just a minority then ignore them), then LK simply pays back the loan as per agreement and case closed. Life is simple, when presented with choices, one simply choose the best one available... not the one in ethereal mode.

But of course every decision can not satisfy every human-being by nature, let alone all the political craps when involving the so-called political parties of different colors and agendas ... with sole motive to make its opponents look bad, to capitalize from such "success" and regain power....

 

[ahojunk]

The current PM couldn't stand to develop the H'tota port to it's full capacity. He has came to power criticizing the port and many other allegations. Therefore his only saving grace is to sell the port and claim it was sold to reduce the debt burden.

This is rather unfortunate for the future of Sri Lanka. The port is the property of the people not the person who has built it in the first place.

Ah! this is how democracy works.
You constantly criticize your political opponents and make them look bad even though their policies may be good.
When your party is in power, you try to undo the policies of your opponent.
You only worry about winning the next election. (One way is to make your opponents look bad).
No point worrying about what happens in 99 years time.

 

[Dark-Destroyer]

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?

was it hard for you not to mention Pakistan that you couldn't help yourself to go off topic to have you 2 second rant

 

[samsara]

In the meantime, in one out of the many Chinese projects in Sri Lanka nowadays....

Feature: China-funded Colombo Port City becoming "shining pearl of Indian Ocean"

By Huang Haimin - Xinhua 2017-04-08 00:30:07

The Colombo Port City design​

COLOMBO, April 7 (Xinhua) -- With Jun Hai 1, Asia's largest trailing suction hopper dredger joining the construction fleet, the land reclamation of Colombo Port City, as a future city and long awaited by Sri Lankans, has been proceeded rapidly.

The 1.4-billion-U.S. dollar project, which is currently under construction near the Colombo Harbor, is Sri Lanka's largest foreign direct investment (FDI).

"As a Sri Lankan, I feel so proud that I can be participating in the project and really look forward to the completion of the project as early as possible, so that it would bring new opportunities to our people and our motherland which has just recovered from a 30-year civil war," Chandana Gunawardena, deputy project manager of the Colombo Port City Project, told Xinhua on Thursday.

This brand-new "financial city" is taking shape gradually from the sea area right beside the Colombo International Container Terminals, which is being operated by the China Merchants Ports Holdings.

Because of Colombo Port City, Chandana now has a stable job and a good outlook in his career.

He said the mega-project would boost the country's economic development via spurring FDI and the private sector's growth.

"By making Colombo a better city, Colombo Port City will attract more and more Sri Lankan diaspora back to their homeland," he said.

Chandana believed that the project is going to transfer Colombo to an important commercial hub in South Asia and "a shining pearl of the Indian Ocean."

Invested and developed by the China Communications Construction Company Limited (CCCC), Colombo Port City is the largest project between China and Sri Lanka under the China-proposed Belt and Road Initiative, especially the 21st Century Maritime Silk Road.

The Silk Road Economic Belt and the 21st Century Maritime Silk Road, known as Belt and Road Initiative, were proposed in 2013 with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes.

Most of local construction and technical employees at the Port City project told Xinhua that the China-funded project has brought about jobs, higher salary and a better life, making them to be confident with their future careers.

"Colombo Port City is a key project in South Asia under the Belt and Road Initiative and it has well matched Sri Lanka's Western Megapolis development strategy," CCCC Chairman Liu Qitao told Xinhua.

"With investment of 1.4 billion dollars, Phase 1 project has land reclamation of 269 hectares, out of which there will be 178-hectare developable land for commercial developments," he said.

"The total Gross Floor Area (GFA) will come up to 5.65 million sq meters, including residence, hotel, office and retail mall among others. Other iconic developments in the project include theme park, yacht marina, central park, medical center, international school and sand beach ect," Liu said. "These will attract further 13 billion dollars investment of property developments within the city."

Liu belived the construction of Colombo Port City will not only contribute to Sri Lakan's socio-economic development, but also play an exemplary role in attracting foreign investment, and furthermore, it will attract international high-end professionals and introduce world's advanced technology so as to promote the competitiveness of local enterprise.

The construction of the Port City will also create job opportunities for the locals, with a total of 83,000 jobs expected in the 20 years from implementation to completion of the project, he claimed.

"As a father, I expect my kids to work in this city with a promising future, make contributions to the country while achieving their own career goals," Chandana said hopefully.

http://news.xinhuanet.com/english/2017-04/08/c_136191207.htm

~~~~~~~~~

Colombo Port City English Intro By Colombo Port City

Colombo Port City, a brand-new, large–scale land reclamation and city development project, is a concept developed through the joint efforts of the Government of Sri Lanka and the China Communications Construction Company Limited (CCCC), a Chinese multinational corporate. Their combined work has produced a dream of a project – the realisation of which would serve not only Sri Lanka, but the entirety of South Asia.

 

[HeinzG]

OF COURSE it's quite different IF it's the case.

Sale = permanent transfer of ownership rights
Lease 99 yrs = just renting out for 99 years (sound so remotely distant for individuals; but for a nation, it's just a blink of history)

Anyhow, IF it's true and IF majority of LK has the objection to such lease (if just a minority then ignore them), then LK simply pays back the loan as per agreement and case closed. Life is simple, when presented with choices, one simply choose the best one available... not the one in ethereal mode.

But of course every decision can not satisfy every human-being by nature, let alone all the political craps when involving the so-called political parties of different colors and agendas ... with sole motive to make its opponents look bad, to capitalize from such "success" and regain power....

99 years is a long time even for a state. Many things could change with in 9 years. Take an example of Hong Kong. Sri Lanka would lose so such strategic advantage by leasing H'tota port to China for 99 years.

Sri Lanka can still pay the debt without going bankrupt. It is only the current government's agenda to sell the H'tota port for their own political gains.

In the meantime, in one out of the many Chinese projects in Sri Lanka nowadays....

Feature: China-funded Colombo Port City becoming "shining pearl of Indian Ocean"

By Huang Haimin - Xinhua 2017-04-08 00:30:07

The Colombo Port City design​

COLOMBO, April 7 (Xinhua) -- With Jun Hai 1, Asia's largest trailing suction hopper dredger joining the construction fleet, the land reclamation of Colombo Port City, as a future city and long awaited by Sri Lankans, has been proceeded rapidly.

The 1.4-billion-U.S. dollar project, which is currently under construction near the Colombo Harbor, is Sri Lanka's largest foreign direct investment (FDI).

"As a Sri Lankan, I feel so proud that I can be participating in the project and really look forward to the completion of the project as early as possible, so that it would bring new opportunities to our people and our motherland which has just recovered from a 30-year civil war," Chandana Gunawardena, deputy project manager of the Colombo Port City Project, told Xinhua on Thursday.

This brand-new "financial city" is taking shape gradually from the sea area right beside the Colombo International Container Terminals, which is being operated by the China Merchants Ports Holdings.

Because of Colombo Port City, Chandana now has a stable job and a good outlook in his career.

He said the mega-project would boost the country's economic development via spurring FDI and the private sector's growth.

"By making Colombo a better city, Colombo Port City will attract more and more Sri Lankan diaspora back to their homeland," he said.

Chandana believed that the project is going to transfer Colombo to an important commercial hub in South Asia and "a shining pearl of the Indian Ocean."

Invested and developed by the China Communications Construction Company Limited (CCCC), Colombo Port City is the largest project between China and Sri Lanka under the China-proposed Belt and Road Initiative, especially the 21st Century Maritime Silk Road.

The Silk Road Economic Belt and the 21st Century Maritime Silk Road, known as Belt and Road Initiative, were proposed in 2013 with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes.

Most of local construction and technical employees at the Port City project told Xinhua that the China-funded project has brought about jobs, higher salary and a better life, making them to be confident with their future careers.

"Colombo Port City is a key project in South Asia under the Belt and Road Initiative and it has well matched Sri Lanka's Western Megapolis development strategy," CCCC Chairman Liu Qitao told Xinhua.

"With investment of 1.4 billion dollars, Phase 1 project has land reclamation of 269 hectares, out of which there will be 178-hectare developable land for commercial developments," he said.

"The total Gross Floor Area (GFA) will come up to 5.65 million sq meters, including residence, hotel, office and retail mall among others. Other iconic developments in the project include theme park, yacht marina, central park, medical center, international school and sand beach ect," Liu said. "These will attract further 13 billion dollars investment of property developments within the city."

Liu belived the construction of Colombo Port City will not only contribute to Sri Lakan's socio-economic development, but also play an exemplary role in attracting foreign investment, and furthermore, it will attract international high-end professionals and introduce world's advanced technology so as to promote the competitiveness of local enterprise.

The construction of the Port City will also create job opportunities for the locals, with a total of 83,000 jobs expected in the 20 years from implementation to completion of the project, he claimed.

"As a father, I expect my kids to work in this city with a promising future, make contributions to the country while achieving their own career goals," Chandana said hopefully.

http://news.xinhuanet.com/english/2017-04/08/c_136191207.htm

~~~~~~~~~

Colombo Port City English Intro By Colombo Port City

Colombo Port City, a brand-new, large–scale land reclamation and city development project, is a concept developed through the joint efforts of the Government of Sri Lanka and the China Communications Construction Company Limited (CCCC), a Chinese multinational corporate. Their combined work has produced a dream of a project – the realisation of which would serve not only Sri Lanka, but the entirety of South Asia.

There is no issue what so ever with Colombo Port City and also the H'tota port and it's proposed industrial zone. Those are the much needed development project of Sri Lanka. The issue is that selling (leasing) of the port to China and giving away parts of my country to some foreigners by citing bogus reasons.

 

[ahojunk]

Feature: China-funded Colombo Port City becoming "shining pearl of Indian Ocean"

When it comes to building entire cities or a big section of a city, the Chinese are the best. In short, building massive infrastructure, no other country can compare with China.

China has an "unfair" advantage, they started doing these a few thousand years ago, just look at their Great Wall. It is in their DNA to build infrastructures on a massive scale and at a massive speed - China scale and China speed.

In the present time, China has built 22,000 km of high speed rail within 8 years. It is not only the quantity but also the quality. This HSR is the fastest and smoothest in operation. Most railway enthusiasts will say the Chinese HSR is now the world's best. China is also able to build it at the least cost. As a result, their HSR tickets are very affordable to their population. Recent statistics showed that 52% (iirc) of all train tickets are HSR. They prefer to pay more for their HSR over their slower green trains.

When it comes to building cities, China builds entire cities or blocks simultaneously. So while it is still under construction, the western media may come and report on these "ghost cities". Case in point are Ordos and Zhengzhou. What they fail to realise is that China has built hundreds of new cities in the past few decades and there will be a tiny few which are a little slow in people moving in.

Sri Lanka has to watch out for these "sour grapes" type fake news. Just be aware of them. I hope Sri Lanka is able to grasp the opportunities which come with the Colombo Port City and Hambantota Port.
.

 

[Jlaw]

I also believe that there would be a settlement (like new terms on loan payment) instead of a write-off, which sounds very idiotic.

Like @eldarlmari says, China is not the biggest developing charity; loans are given on positive return or, at least, an equal payment back.

I am sure if SL government insists on a write-off, there would be legal ways to enforce a payment.

Renegotiating is not a good way as it sets a presecendent for other poor countries to not pay china back. Srilanka can use other means to pay such as gold, etc. If all else fail stop all trade with SL.


There is a chance SL politicians pocketed the loan and will not pay back. What's the point of giving more loans to a country that will not pay back old debt?

 

[Quibbler]

Renegotiating is not a good way as it sets a presecendent for other poor countries to not pay china back. Srilanka can use other means to pay such as gold, etc. If all else fail stop all trade with SL.


There is a chance SL politicians pocketed the loan and will not pay back. What's the point of giving more loans to a country that will not pay back old debt?

I wouldnt call Sri Lanks poor. They are actually quite well of in per capita terms in the reigon.