China&nbsp;has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing.

“Sri Lanka going to IMF with a short notice has unavoidably impacted the discussion,” China’s envoy to Sri Lanka Qi Zhenhong told reporters in Colombo on Monday, according to Bloomberg.

Qi also said that China was unhappy when Sri Lanka suspended its debt servicing for the first time in its history, adding that discussion with the multilateral lender will affect future bilateral loans.

“We can’t comment now on a possible loan to Sri Lanka,” Qi added.

The comments came a day after the Sri Lankan ministers held negotiations with the IMF in Washington, DC.

According to the statement released by the IMF, the Sri Lankan government will be given an interim amount anywhere between $300 million to $600 million which will be spent on purchasing medicines and other essential items.

The global financial institution further said that Sri Lanka will receive a hefty amount from the World Bank over the next four months.

The cash-strapped country needs at least US $4 billion to tide over its mounting economic woes.

On Saturday, India agreed to extend an additional US $500 million credit line to help Sri Lanka import fuel. India has already agreed to defer USD 1.5 billion in import payments that Colombo needs to make to the Asian Clearing Union.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lankan-lawmaker-calls-on-chinas-xi-jinping-to-stop-its-economic-invasion-442386">Sri Lankan lawmaker calls on China’s Xi Jinping to stop its ‘economic invasion’</a>

On Friday, New Delhi has also extended the tenure of a US $400 million swap given in January this year, the Indian High Commission said.

Also read |<a href="https://www.wionews.com/india-news/india-urges-imf-to-provide-urgent-bailout-to-sri-lanka-472066">&nbsp;</a><a href="https://www.wionews.com/india-news/india-urges-imf-to-provide-urgent-bailout-to-sri-lanka-472066">India urges IMF to provide urgent bailout to Sri Lanka</a>

On Saturday, Sri Lankan President Gotabaya Rajapaksa said the crisis-hit country welcomed investments, technology transfers and financing for its sustainability efforts and cooperation for debt restructuring to support the economic recovery during this critical time.

Watch |&nbsp;Sri Lanka Economic crisis: Sri Lankan delegation meets with IMF officials in Washington, DC

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/sri-lanka-economic-crisis-sri-lankan-delegation-meets-with-imf-officials-in-washington-dc-473378/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

(With inputs from agencies)

China has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing.

China has expressed apprehension over Sri Lanka seeking a bailout package from International Monetary Fund (IMF), saying that such a move would impact ongoing credit talks with Beijing. “Sri Lanka going to IMF with a short notice has unavoidably impacted the discussion,” China’s envoy to Sri Lanka Qi Zhenhong told reporters in Colombo on Monday, according to Bloomberg. Qi also said that China was unhappy when Sri Lanka suspended its debt servicing for the first time in its history, adding that discussion with the multilateral lender will affect future bilateral loans. “We can’t comment now on a possible loan to Sri Lanka,” Qi added. The comments came a day after the Sri Lankan ministers held negotiations with the IMF in Washington, DC. According to the statement released by the IMF, the Sri Lankan government will be given an interim amount anywhere between $300 million to $600 million which will be spent on purchasing medicines and other essential items. The global financial institution further said that Sri Lanka will receive a hefty amount from the World Bank over the next four months. The cash-strapped country needs at least US $4 billion to tide over its mounting economic woes. On Saturday, India agreed to extend an additional US $500 million credit line to help Sri Lanka import fuel. India has already agreed to defer USD 1.5 billion in import payments that Colombo needs to make to the Asian Clearing Union. Also read | Sri Lankan lawmaker calls on China’s Xi Jinping to stop its ‘economic invasion’ On Friday, New Delhi has also extended the tenure of a US $400 million swap given in January this year, the Indian High Commission said. Also read | India urges IMF to provide urgent bailout to Sri Lanka On Saturday, Sri Lankan President Gotabaya Rajapaksa said the crisis-hit country welcomed investments, technology transfers and financing for its sustainability efforts and cooperation for debt restructuring to support the economic recovery during this critical time. Watch | Sri Lanka Economic crisis: Sri Lankan delegation meets with IMF officials in Washington, DC (With inputs from agencies)

China ‘unhappy’ with Sri Lanka for seeking bailout from IMF

A Sri Lankan parliamentarian has shot off a letter to Chinese President Xi Jinping to stop its economic invasion of the island nation, putting its future in jeopardy.

Notably, the letter&nbsp;comes days ahead of&nbsp;Chinese Foreign Minister Wang Yi's visit to Sri Lanka to mark the&nbsp;65th anniversary of China-Sri Lanka<a href="https://www.business-standard.com/topic/sri-lanka" target="_blank">&nbsp;</a>diplomatic relations.

In a 45-point letter to the Chinese president, Sri Lankan lawyer and Member of Parliament Wijeyadasa Rajapakshe said that most of the projects carried out with Chinese funds have been wasteful and large commissions have been paid to the corrupt politicians and officials to secure such projects.

He also warned China of the repercussions for to its constant influence on Sri Lankan politicians, adding that the people will not hesitate to overthrow the government at the first available opportunity and this could be the case in the next election in the country.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/with-colombo-port-city-china-sees-a-potential-overseas-colony-in-sri-lanka-386108">With Colombo port city, China sees a potential overseas colony in Sri Lanka</a>

The lawmaker said if these agreements are found not in compliance with best practices, they would be cancelled once the new government takes over.

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The ties between China and Sri Lanka do not seem to be on a happy note. The ruling party SLPP's MP Wijeyadasa Rajapakshe has written a 45-point letter warning Chinese President Xi Jinping.<a href="https://twitter.com/AthaudaDasuni?ref_src=twsrc%5Etfw">@AthaudaDasuni</a> speaks with Rajapajshe for insights 
 
Watch more: <a href="https://t.co/AXC5qRcEPB">https://t.co/AXC5qRcEPB</a> <a href="https://t.co/zWEKn2yZdq">pic.twitter.com/zWEKn2yZdq</a>
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“Transactions you have secured through corruption will be cancelled and we hold no liability to pay back any loans obtained for such contracts. In the event of any restructuring, under no circumstances the period of any agreement will be permitted to exceed a period of 15 years from the date of the inception of such contracts,” he said.

Rajapakshe also accused of China using the 'One Belt, One Road'&nbsp;policy into pushing Sri Lanka into its “debt trap” “with the ultimate ambition of making this country a battlefield of yours in your voyage to the world’s power.”

Later while speaking to WION, Rajapakshe blamed Mahinda Rajapaksa, the two-time president and the current prime minister, for letting Sri Lanka get trapped under the Chinese debt.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/as-us-withdraws-aid-chinese-mission-to-push-sri-lanka-further-into-debt-succeeds-350555">As US withdraws aid, Chinese mission to push Sri Lanka further into debt succeeds</a>

In 2017, the previous Maithripala Sirisena government had to hand over Hambantota port to a state-run Chinese firm for a 99 years’ lease as a debt swap amounting to $1.2 billion.

“When Hambantota port project was commenced, negotiations were taking place during the president (Chandrika) Kumaratunga period. They (Chinese firm) were to construct a harbour there and for that, they quoted $390 million.”

“After the change of the government in 2005, when Rajapakshe came to power—the time when China launched their One Belt One Road initiative—the quotation of the contract went up. Initially, they charged $580 million and finally ended up quoting $1,285 million.”

Apart from making the country bankrupt, Rajapakshe also blamed China for dismantling Sri Lanka’s foreign relations with India, US and the EU.

(With inputs from agencies)

A Sri Lankan parliamentarian has shot off a letter to Chinese President Xi Jinping to stop its economic invasion of the island nation, putting its future in jeopardy.

A Sri Lankan parliamentarian has shot off a letter to Chinese President Xi Jinping to stop its economic invasion of the island nation, putting its future in jeopardy. Notably, the letter comes days ahead of Chinese Foreign Minister Wang Yi's visit to Sri Lanka to mark the 65th anniversary of China-Sri Lanka diplomatic relations. In a 45-point letter to the Chinese president, Sri Lankan lawyer and Member of Parliament Wijeyadasa Rajapakshe said that most of the projects carried out with Chinese funds have been wasteful and large commissions have been paid to the corrupt politicians and officials to secure such projects. He also warned China of the repercussions for to its constant influence on Sri Lankan politicians, adding that the people will not hesitate to overthrow the government at the first available opportunity and this could be the case in the next election in the country. Also read | With Colombo port city, China sees a potential overseas colony in Sri Lanka The lawmaker said if these agreements are found not in compliance with best practices, they would be cancelled once the new government takes over. The ties between China and Sri Lanka do not seem to be on a happy note. The ruling party SLPP's MP Wijeyadasa Rajapakshe has written a 45-point letter warning Chinese President Xi Jinping.@AthaudaDasuni speaks with Rajapajshe for insights Watch more: https://t.co/AXC5qRcEPB pic.twitter.com/zWEKn2yZdq — WION (@WIONews) January 5, 2022 × “Transactions you have secured through corruption will be cancelled and we hold no liability to pay back any loans obtained for such contracts. In the event of any restructuring, under no circumstances the period of any agreement will be permitted to exceed a period of 15 years from the date of the inception of such contracts,” he said. Rajapakshe also accused of China using the 'One Belt, One Road' policy into pushing Sri Lanka into its “debt trap” “with the ultimate ambition of making this country a battlefield of yours in your voyage to the world’s power.” Later while speaking to WION, Rajapakshe blamed Mahinda Rajapaksa, the two-time president and the current prime minister, for letting Sri Lanka get trapped under the Chinese debt. Also read | As US withdraws aid, Chinese mission to push Sri Lanka further into debt succeeds In 2017, the previous Maithripala Sirisena government had to hand over Hambantota port to a state-run Chinese firm for a 99 years’ lease as a debt swap amounting to $1.2 billion. “When Hambantota port project was commenced, negotiations were taking place during the president (Chandrika) Kumaratunga period. They (Chinese firm) were to construct a harbour there and for that, they quoted $390 million.” “After the change of the government in 2005, when Rajapakshe came to power—the time when China launched their One Belt One Road initiative—the quotation of the contract went up. Initially, they charged $580 million and finally ended up quoting $1,285 million.” Apart from making the country bankrupt, Rajapakshe also blamed China for dismantling Sri Lanka’s foreign relations with India, US and the EU. (With inputs from agencies)

Sri Lankan lawmaker calls on China’s Xi Jinping to stop its ‘economic invasion’

China is not just Pakistan's lifeline, but Nepal's guide, mentor and creditor too. It is not set to be Iran's biggest investor too with a 400 million dollars new deal.&nbsp;

And now China is tightening its grip on Sri Lanka by pushing India and its allies out.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/india-news/covid-19-india-sri-lanka-hold-talks-on-colombos-debt-repayment-309753">Covid-19: India, Sri Lanka hold talks on Colombo's debt repayment</a>

Take a look at China's encirclement strategy. How China is building ports and infrastructure around the Indian subcontinent.&nbsp;

Sri Lanka is a key part of this strategy. The country had to give up the Hambantota Port to China on a 99 year lease. With this port, Colombo has given Beijing a strategic foothold along a critical, commercial and military waterway.&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-china-pushing-india-out-of-a-sri-lankan-port-314759/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

A report that came out 10 days ago suggest Sri Lanka is rethinking of a port deal with India.&nbsp;

The deal was signed between India, Japan and Sri Lanka in 2019 and allowed India and Japan to develop a new east container terminal.

As per the agreement, Sri Lanka has the majority, 51 per cent stake at the deal, but still President Gotabaya Rajapaksa wants to shelve it.&nbsp;

Apparently, the workers at the Colombo port want the deal scrapped, a reason that looks silly.

A closer look at the issue declutters the situation. Sri Lanka is flush with Chinese funds and 12 per cent of its debts are owed to Beijing.&nbsp;

This means China dictates terms and that explains the situation itself.&nbsp;

Rajapaksa seems to be distancing himself from the grants and funds offered by the Quad nations.&nbsp;

In June, a Japan-funded rail project was shelved. Sri Lankan officials urged the president to refuse a $480 million grant from the US, however, final decision is yet to be taken.&nbsp;

And now India's role in the Colombo port is under a shadow.

These developments benefit only one party, and that's China.&nbsp;

Beijing is securing its strong foothold in Sri Lanka and wants to drive others out.&nbsp;

Also, China is meddling in Lankan politics too. General elections are due in the island nation and reports suggest Chinese are cultivating a "wide swathe of political allies". Representatives from China are meeting leading political parties.&nbsp;

Some of these meetings are happening behind closed doors, others are out in open.&nbsp;

A picture was clicked last year, which has an interesting composition. All leading political parties in Sri Lanka and the members of the Communist Party are present in a single frame.&nbsp;

This means that China is investing in all political players. So, it doesn't matter who gets elected on the upcoming elections, but China will be the winner.&nbsp;

Six days ago, China's state wire agency said the Chinese embassy donated masks to the election commission of Sri Lanka

The press release went on to describe how China "supports" Sri Lankan local, and central governments, enterprises, organisations and individuals.&nbsp;

In March, Colombo sought a loan of $500 million from China to fight the Wuhan virus and Beijing was quick to write the cheque and draw Colombo deeper in its trap of debt.&nbsp;

China is not just Pakistan's lifeline, but Nepal's guide, mentor and creditor too. It is not set to be Iran's biggest investor too with a 400 million dollars new deal.

China is not just Pakistan's lifeline, but Nepal's guide, mentor and creditor too. It is not set to be Iran's biggest investor too with a 400 million dollars new deal. And now China is tightening its grip on Sri Lanka by pushing India and its allies out. Also read | Covid-19: India, Sri Lanka hold talks on Colombo's debt repayment Take a look at China's encirclement strategy. How China is building ports and infrastructure around the Indian subcontinent. Sri Lanka is a key part of this strategy. The country had to give up the Hambantota Port to China on a 99 year lease. With this port, Colombo has given Beijing a strategic foothold along a critical, commercial and military waterway. A report that came out 10 days ago suggest Sri Lanka is rethinking of a port deal with India. The deal was signed between India, Japan and Sri Lanka in 2019 and allowed India and Japan to develop a new east container terminal. As per the agreement, Sri Lanka has the majority, 51 per cent stake at the deal, but still President Gotabaya Rajapaksa wants to shelve it. Apparently, the workers at the Colombo port want the deal scrapped, a reason that looks silly. A closer look at the issue declutters the situation. Sri Lanka is flush with Chinese funds and 12 per cent of its debts are owed to Beijing. This means China dictates terms and that explains the situation itself. Rajapaksa seems to be distancing himself from the grants and funds offered by the Quad nations. In June, a Japan-funded rail project was shelved. Sri Lankan officials urged the president to refuse a $480 million grant from the US, however, final decision is yet to be taken. And now India's role in the Colombo port is under a shadow. These developments benefit only one party, and that's China. Beijing is securing its strong foothold in Sri Lanka and wants to drive others out. Also, China is meddling in Lankan politics too. General elections are due in the island nation and reports suggest Chinese are cultivating a "wide swathe of political allies". Representatives from China are meeting leading political parties. Some of these meetings are happening behind closed doors, others are out in open. A picture was clicked last year, which has an interesting composition. All leading political parties in Sri Lanka and the members of the Communist Party are present in a single frame. This means that China is investing in all political players. So, it doesn't matter who gets elected on the upcoming elections, but China will be the winner. Six days ago, China's state wire agency said the Chinese embassy donated masks to the election commission of Sri Lanka The press release went on to describe how China "supports" Sri Lankan local, and central governments, enterprises, organisations and individuals. In March, Colombo sought a loan of $500 million from China to fight the Wuhan virus and Beijing was quick to write the cheque and draw Colombo deeper in its trap of debt.

China's debt trap: Is India out of the Colombo Port deal?