The Chinese Chamber of Commerce in Sri Lanka (CCCSL) on Sunday(26) rejected Sri Lankan Financial Minister Ravi Karunanayake's allegation of the ‘so-called high interest rates of Chinese loan.’
Spokesperson of the Chinese Chamber of Commerce in Sri Lanka (CCCSL) Chen Chuan told that the interest rates of Chinese loans are not high. During the past 10 years, at the request of the Sri Lankan government, China has provided loans amounting several billion US dollars in supporting of Sri Lanka's economic and social development, among which more than half are at the interest rates of only 2 percent.
As for the commercial loans, Chen further pointed out that the international financing costs hiked in 2007, and the Sri Lankan government issued treasury bonds at the interest rates ranging from 12 percent to 14 percent during that period when Sri Lanka was still in internal conflict. At that time, Chinese relevant banks provided Sri Lanka with a large amount of preferential loans as well as some commercial loans with 6 percent interest rates which were quite favorable and reasonable at the time.
The spokesperson stressed that it is the Sri Lankan government that submitted applications for loans from Chinese banks and no one forced the Sri Lankan side to apply for loans. The Sri Lankan side always conducted a thorough survey prior to applying for loans from China. The negotiators from the Sri Lankan side were very professional and loyal to their country and the people while negotiating loan agreements with Chinese banks.
Some high ranking official's wrong allegations on interest rates of Chinese loans have damaged the image of Chinese banks in Sri Lanka and demotivated their enthusiasm of offering preferential loans to the country, said the spokesperson.
"We hope that Sri Lankan official concerned will make remarks based on the facts, take the people's well-being as first priority and make joint efforts with the Chinese side to maintain the good environment of China-Sri Lanka pragmatic cooperation."
(With Inputs From Xinhua)
