China pledges support to SL at UNHRC but mum on debt restructuring

In an article titled “From One-China Principle to ‘Yuan Wang 5’: Let’s Join Hands and Resolutely Safeguard Our Sovereignty, Independence and Territorial Integrity” published on 'Sri Lanka Guardian' on August 26, Chinese Ambassador in Sri Lanka Qi Zhenhong said China will continue to support Sri Lanka at international fora for protecting its sovereignty, independence, and territorial integrity.

Referring to the 51st session of the UN Human Rights Council (UNHRC) being held in Geneva, Switzerland, Ambassador Qi said China had suffered a hundred years of humiliation from 1840 to 1949 just like Sri Lanka.

"Because of the similar dark experience, China has always been supporting Sri Lanka in the international fora for protecting its sovereignty, independence, and territorial integrity. We will continue to do that. In contrast, some countries, far or near, always make various groundless excuses to bully Sri Lanka, and repeatedly trample on Sri Lanka’s sovereignty and independence.

"Human rights issues in Sri Lanka might probably be stirred up again at the 51st session of the UNHRC. As the Sri Lankan people are still grappling with severe economic and humanitarian difficulties, many might wonder what those countries who have been always preaching about human rights will actually do. Will they help Sri Lanka to ease its human rights crisis by providing concrete support? Or will they again use human rights as a cover-up tool to interfere into the island nation’s internal affairs and continue to rub salt into the wound of Sri Lankan people? Just let’s wait and see."

The Chinese Ambassador calls for the countries that 'preach' human rights and bully Sri Lanka to provide concrete support to ease the human rights crisis in the country as the people are struggling with economic and humanitarian crises.

However, these words are ironic since it has been China that's been avoiding Sri Lanka's call for debt structuring in order to ease the economic crisis in Sri Lanka and help the people.

Meanwhile, the Ambassador also highlighted the docking of Chinese vessel Yuan Wang 5 at Sri Lanka’s Hambantota Port saying China and Sri Lanka “altogether resisted the rude and unreasonable interference from third parties”. 

The ship deferred its arrival by a few days on Sri Lanka’s request, after India and the US raised concern over its visit, and left on August 22 after a week in Hambantota.

“With China and Sri Lanka having altogether resisted the rude and unreasonable interference from third parties, the Chinese scientific research vessel “Yuan Wang 5” has successfully docked at the Hambantota Port for replenishment after receiving the latest approval from the Sri Lankan Government,” he said.

In response to these accusations, India hit back at China for alleging that it was “interfering” in Sri Lanka’s internal affairs. “Sri Lanka needs support, not unwanted pressure or unnecessary controversies to serve another country’s agenda,” the Indian High Commission said.

India has provided around USD 4 billion to help keep Sri Lanka's economy afloat, mainly through credit lines and swaps this year.

As India rightly said, what Sri Lanka needs right now is support especially in terms of reviving its economy. In this regard, debt restructuring plays a vital role. However, unlike other creditors of Sri Lanka, China has not yet favourably and directly responded to requests by Sri Lanka to allow debt restructuring.

It is estimated that Sri Lanka owes debt payments of USD 1.5 to 2 billion this year to China. Overall China's loans and investments in Sri Lanka were estimated to be more than USD eight billion in the last few years.

However, China has not made a public commitment for debt relief assistance to Sri Lanka so far.

Meanwhile, a Chinese Embassy Spokesman was quoted as having said that China had communicated to the Sri Lankan Finance Ministry three months ago about its readiness to discuss how to address the debt issue with the Chinese banks.

“We sent proposals to the Finance Ministry. But, there was no response from them. Also, Sri Lanka insisted that it should complete the agreement with the International Monetary Fund (IMF) first. The ball is in Sri Lanka's court,” the spokesman said.

Sri Lanka's total bilateral debt was estimated at USD 6.2 billion at the end of 2020 by the IMF. Japan and China hold the largest shares.

Meanwhile, Samantha Power, Administrator of the United States Agency for International Development (USAID) during her recent visit to Sri Lanka said China must cooperate with Sri Lanka in its debt restructure process.
 
Japanese Minister of Finance Shunichi Suzuki also urged all creditor nations to gather and discuss Sri Lanka’s debt at the same table. Suzuki was quoted as telling reporters that Japan would coordinate with other creditors to resolve Sri Lanka’s deepening financial crisis. 

Suzuki said Sri Lanka must accelerate talks with the IMF on a bailout and that all bilateral creditors, including China and India, must gather to discuss the issue.