Sri Lanka: Massive kickbacks in unsolicited projects ( with China)

Sri Lanka's President Mahinda Rajapaksa
toasts with China's President Xi Jinping

It has long been suggested that the UPFA Government’s signature fondness for unsolicited proposals comes from the generous fringe benefits they earn for some of its members. It is also speculated that Sri Lanka pays premium rates for its gleaming new infrastructure because prices are inflated to include massive kickbacks.

 In a recent interview with the Sunday Times, Treasury Secretary P. B. Jayasundera did not deny that commissions are factored into project costs. He only said he did not know. While acknowledging the existence of agents — who commonly negotiate payoffs and have close ties with the few names that control this Government — Dr. Jayasundera stressed that “no commission guys visit this place” (the Finance Ministry). The logical question then is where do they go?

Drift of the island: From inside Sri Lanka

you cannot miss these bill boards

One of the very first things passengers getting off planes at Colombo’s Bandaranaike International Airport see is a huge portrait of Sri Lankan president Mahinda Rajapaksa. The view remains pretty much the same as one travels across the island. You cannot miss the billboards and posters in every nook and corner with the president staring at you.

The visitors are also likely to see something more striking – almost insane infrastructural projects, the thing which magnifies Sinhalese majority’s acclaim for nationalist government. Brand new roads, hotels and railway lines are to be the proofs of country’s tremendous progress. The greatest efforts to make these proofs visible are being made in president’s home district. The officials hope to boost economic development of the area by constructing a new city near dull fishing town of Hambantota.

25-year corporate tax holiday for US$ 1.3 billion offshore (China - ) Colombo Port City

Government has granted a generous 25-year corporate tax holiday to Colombo Port City, the Rs 172.4 billion (US$ 1.3 billion) project to reclaim more than 575 acres (233 hectares) of sea off Galle Face Green.
The project company, CHEC Port City Colombo (Private) Ltd, will also be exempt from tax on dividends for 25 years as well, as a host of other levies for a lesser period of time. The concessions were gazetted on January 24 under Section 3 (2) of the Strategic Development Projects Act.

China seeks to cultivate Sri Lanka ties but without international reproach

Human rights left on the back burner

It is not often that the Chinese government criticises another nation for how it handles civil liberties, especially a country with which it has close financial and diplomatic ties. So it was curious when Qin Gang, a spokesman for the Chinese foreign ministry, advised Sri Lanka, a nation accused of committing war crimes, to "make efforts to protect and promote human rights".

China asks Lanka to protect and promote human rights

Defense secretary  Rajapaksha and
Chinese Defense Minister Liang Guanglie

In a surprise move, China today asked Sri Lanka to "make efforts to protect and promote human rights", backing calls by India, Britain and other countries at the CHOGM summit in Colombo to address allegations of rights abuses against the country's minority Tamils.

Sri Lanka: Repaying massive loans to China; Interests rate raised to 6.3% form 1.3%

A costly mistake?  By Gagani Weerakoon

While the government has been attracting much criticism over its excessive loan taking for various development projects, it has now come under flak from the opposition for 'incorrectly' renegotiating with China to increase a previously agreed upon interest rate of 1.3% to 6.3% on a loan of US$ 306.7 million taken for the Hambantota Port Project.

An expressway paved with gold

Rajapaksha driving on the high way

(LBO) Sri Lanka opened its second expressway Sunday linking the capital with the country's main international airport with some 250 million dollars borrowed from China.

The 25.8-kilometre four-lane road is expected to reduce travel time by more than half, but the for Sri Lankan tax payers it would be a long haul to repay the loan and finance the estimated $292 cost of the project.

Not in ‘string of pearls’: Gotabhya defends Chinese involvement

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The HinduHambantota Port East Sri Lanka Oct 2012 Photo R.K.Radhakrishnan

R. K. Radhakrishnan

In a spirited defence of Chinese investments, Defence and Urban Development Secretary Gotabaya Rajapaksa has said the Hambantota port is not part of a Chinese ‘string of pearls’ to surround India.

China built the deep-water port in the southern tip of Sri Lanka, in the constituency from where President Mahinda Rajapaksa hails. Only one phase is complete and the port has not been receiving as many ships as expected.