Exclusive: China's Debt-Trap is Manufactured Fallacy

"It is possible that the previous government had an ulterior motive to push the country into a serious financial crisis"

by Our Diplomatic Editor

Refuting all forms of allegations against the Chinese loans offered to Sri Lanka, the State Minister of Money & Capital Market and State Enterprise Reforms, MP Ajith Nivaard Cabral told the Sri Lanka Guardian, that so-called China's Debt-Trap is nothing but a manufactured fallacy may be aiming to achieve ultra-motivational desires of certain parties.

The State Minister of Money & Capital Market and State Enterprise Reforms of Sri Lanka, MP Ajith Nivaard Cabral

“Chinese loans account for about 13 to 14 percent of the total loans we obtain as a country. Anyone who owns a simple arithmetic knowledge can understand the truth. Which one is giving you more burdens, 14 percent or remaining 86 percent. It shows where the real debt trap is laying,” State Minister Mr Cabral observed.  

According to the state Minister, China is a noble partner but some parties, unfortunately, including some groups are at the local level too have participated in creating a myth which has attempted to restrain truth and propagate the falsehood. 

“I will tell you just one example out of dozens. The total amount of sovereign bonds to be paid by Sri Lanka at present is US $ 14,050 million. Of those sovereign bonds, US $ 6,900 million was issued during the 15-month period from April 2018 to June 2019. It is doubtful that these loans were taken deliberately by the previous government which knew that it is going defeat soon after the local government elections held in March 2018. It is possible that the previous government had an ulterior motive to push the country into a serious financial crisis,” the state minister asserted.

During the interview, the State Minister did not hesitate to quote factual data in reports to substantiate his argument to how some of those parties including some media outfits manufactured the concept debt trap as the dreadful enemy of the nation. “ It is not true, but we believe China have a deeper understanding about Sri Lanka and we both countries working towards mutual benefits while respecting fundamental governing principles,” the State Minister said.