Date
21 October 2017
Government minister Rajitha Senaratne says the contracts for the Chinese projects are binding and cannot be cancelled. Photo: Internet
Government minister Rajitha Senaratne says the contracts for the Chinese projects are binding and cannot be cancelled. Photo: Internet

Sri Lanka makes a U-turn on China infrastructure projects

Sri Lanka has given the go-ahead for billions of dollars’ worth of Chinese projects, almost a year after it threatened to cancel them because of corruption and overpricing.

The projects were suspended by the government of President Maithripala Sirisena after claims these were sweetheart deals between China and the previous administration, Reuters reports.

Sirisena was elected in January

Rajitha Senaratne, a government minister and spokesman for the cabinet, said the projects cannot be scrapped because the contracts are binding, even though there was no competitive bidding and some projects went against the advice of experts.

“All the projects will continue because we can’t stop them. We have already signed agreements,” Senaratne said.

“We are on a weak wicket,” he added — a cricketing analogy meaning the government is in a difficult position.

The move may improve Sri Lanka’s diplomatic ties with China, its biggest foreign investor.

Sirasena’s government has sought to pursue a more global foreign policy, breaking with the previous administration’s pursuit of closer China ties.

So far, however, it has failed in its stated aim of replacing 70 percent of the more than US$5 billion Sri Lanka owes to Chinese lenders with loans at cheaper interest rates and of longer durations from other governments.

Sri Lanka’s government has 16 ongoing Chinese-backed infrastructure projects, including a US$1.4 billion “port city” project in Colombo that encompasses shopping malls, a water sports area, golf course, hotels, apartments and marinas.

Work on that project was halted soon after the new government took power as it investigated whether the deal broke rules and involved corrupt payments.

– Contact us at [email protected]

FL/RA

EJI Weekly Newsletter

Please click here to unsubscribe