What happens when you fail to pay your debt to China

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The Hambantota port on Sri Lanka’s southern coast. Credit Lakruwan Wanniarachchi/Agence France-Presse — Getty Images

Sri Lanka Formally Hands Over Hambantota Port To China

Sri Lanka last December formally handed over the strategic southern port of Hambantota to China on a 99-year lease, in a deal dubbed by the opposition as a sell-out.

Two Chinese firms – Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS) managed by the China Merchants Port Holdings Company (CMPort) and the Sri Lanka Ports Authority will own the port and the investment zone around it, officials said.

Prime Minister Ranil Wickremesinghe during a visit to China in April had agreed to swap equity in Chinese infrastructure projects launched by former president Mahinda Rajapaksa in his home district.

Sri Lanka owed China USD 8 billion then finance minister Ravi Karunanayake had said last year.

“With this agreement we have started to pay back the loans. Hambantota will be converted to a major port in the Indian Ocean,” Prime Minister Ranil Wickremesinghe said while addressing the handing over ceremony held in parliament.

“There will be an economic zone and industrialisation in the area which will lead to economic development and promote tourism,” the prime minister said.

The government’s grant of large tax concessions to Chinese firms have also been questioned by the opposition.

The opposition and trade unions have dubbed the deal as a sell out of the country’s national assets to China.

The Sri Lankan government had signed a USD 1.1 billion deal in July to sell a 70 per cent stake in the Hambantota port to China.

Sri Lanka received USD 300 million as the initial payment under the 99-year lease agreement which the opposition had described as a sell out.

The port, overlooking the Indian Ocean, is expected to play a key role in China’s Belt and Road initiative, which will link ports and roads between China and Europe.

In order to allay India’s security concerns over the Chinese navy’s presence in Sri Lanka, Prime Minister Wickremesinghe had earlier ruled out the possibility of the strategic port being used as a “military base” by any foreign country.

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46 COMMENTS

  1. the chinese have also taken over the airport they financed in sri lanka.
    Closer to home ZNBC is majority owned by the chinese.
    What ll we end up paying for but not owning.

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    • E. Lungu, don’t even think of handing over anything over to the Chinese on the Copperbelt. It belongs to us and you know what I mean. No wonder you keep on asking all of us to invest back home so that you can TAX our money we’ve worked in foreign nations. Forget country boy.

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    • Lungu, Chinese police men in Zambia. You did authorize all that B.S, you’re not different from A.Holes.

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    • Hambantota! Sounds very *****, it just might have been a ***** port ka,,,,
      There are things in life we learn from other people’s mistakes, but I think lungu has failed to learn from his own mistakes in life and other People’s mistakes,,,,,
      You don’t borrow kaloba to go drink beer and dance,,, at least my grandfather taught me that, if I don’t have I go fishing, in fishing I might just meet Jesus Christ who will turn me into a fisher of men and later go to heaven, case closed

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    • Imagine borrowing K250,000.00 using a property worthy K400,000.00 @ 5% interest rate per month, what will happen if you default in 24 months time? Expect similar faeces no kupolomya in Zambia.

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    • Lungu must# let the campaign start. We cannot have a disappoint running our country making disappointing dicisions.

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  2. – DeadNBC has already been handed over to Chinese
    – Negotiations are going on to hand over new KK International Airport as broke-as.s Zambian Govt has failed to honour its part of the financing agreement.

    Lungu is Malawian & he does not feel the pain of selling National Assets. Most of pipo he’s promoted are NOT indigenous easterners but zambians of Malawian descent.

    He’ll to be sent straight to jail in 2021.

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    • @WHO Yes indeed so what? All negroes used to live in North Africa, in Egypt before coming here so by descent they are what? If we start looking at descent we will find all Zambians to have descended from outside this area now called Zambia

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    • They already own it – and the thief that is illegally in it. Why do you think they get all these contracts that let them send so much money back to China?

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  3. We can hand over Chagwa Lungu , Dorah Siliya and the challenger jet as payment to China for our debt.Throw in some tujilijili as bonus.

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  4. And we have plenty to offer China – ZNBC, ZESCO, ZAMTEL, ZISC, KK international Airport, NRDC, UNZA, UTH, ZRA, RTSA, Lakes, Rivers, National parks, Minerals, Mukula, e. t. c. and last but not least, the Zambian slaves … Kikikiki. What a visionless Bamba Zonke country! Anything goes! We are a lost nation that values nothing. Anyone can come in, get what they want by corrupting a few foreigners we have entrusted with the leadership of this country and the poor so called educated citizen is not bothered. Instead we are happy to joke, sing, dance and praise corruption and Mwibala nonsense! We have simply sold ourselves back into slavery. Just wait and see how ruthless the Chinese can be once they consolidate their hold on stup!d countries!

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  5. Now pipo are aware google china and Papua new guinea, fiji, any less developed country and you will see where zambia is headed by blind faith in chinese lendin

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  6. Look at this from a national security perspective. Our national broadcaster controlled by a foreign power the same foreign power is building our airports so alll aspects of it are known, if we dontt pay for airports they become property of a foreign power our roads in the remote areas built by foreign power so now our country is opened up for easier transport and access to farming land , china is becoming overpopulated, and it is ncreasingly difficult to feed its own pipo. Our chinese friend is on of the major manfacturing countries in the,world, what manufacturing industries have they helped zambia establish. Let us look at ours and our childrens future.

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    • I hear tu sh#t itu like black Mariaz, only problem is black mariaz complain that they have very small twenoz.

      Borrowing too much makes you a slave.

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  7. Unfortunately this is gibberish to the utterly corrupt petty thug Lazy Lungu and his empty tins as they are like our pet dogs they only remember their last meal and only look forward to their next meal !!

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  8. I SOMETIMES WHANT TO RESIST BY CONTRIBUTE “”DO YOU KNOW THE GEOPOLITICS IN THE INDIA CHINA SEA AND WHY THAT PORT SO STARTERGIC TO COMMERCE FOR CHINA WHEN YOU SEE THAT THEN YOU UNDERSTAND THE CARROT FOR POWER PROJECTS AND OTHER PAKISTAN SRI RECEIVED AND INDIA IS THE MOST EVEOUS TO LOOSE BUT SOEVEREIGNITY IS IMPORTANT NOT TO MORGAGE BUT IF YOU UNDERSTAND SRI AND PARKISTAN ROLE IN CHINA BELT THEN YOU UNDERSTAND THOSE ECONOMICALLY DEPRAIVED ARE SO WEAK TO ACCEPT THOSE CONCESSIONS BUT ITS NOT THE CASE OF ZAMBIA ITS WELL DIVERSIFIED BUT BEING ALEART AND APPLYING THE “”RULE AS TO WHICH FIRMS FOREIGN”” INVESTMENTS CAN 100% OWN AND CONTROL IS…

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  9. IS IMPORTANT AND CERTAINLY NOT ZESCO ZAMTEL ZANACO UTH UNZA CBU RDA OR CORE GOVERNMENT AND PUBLIC GOOD OPERATIONS INCLUDING THE MILITARY YOU NEED TO HAVE A COMMITTE ON FOREIGN INVESTMENTS AND SET THE RULES ALSO FOR IDC STATE OWNED TRANSFER OF OWNERSHIP INTERESTS

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  10. YOU MAY ALLOW THEM TO INVEST IN START UPS AND SET THE NON COMPETING RULES OR OTHER LESS STRATERGIC BUT PROFITABLE AREAS FROM START UP TO MATURED COMPANIES OR EVEN STATE OWNED COMPANIES

    TO BE SWALLOWED IN MEGERS AND ACQUSITION AND EVENTUALLY BE A CHILD TO DANCE TO THE TUNNES AS A NATION “CAPTURED” IS SOMETHING DISCGRACEFUL FOR A SOVEREIGN ESPECIALLY BY A COMPANY OR HOSTILE NATION BUT SUCH IS NOT THE CASE FOR ZAMBIA NOW

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  11. THEN ITS A LEASE NOT OUTRIGHT SELL BUT SRI HAS GIVEN AWAY A MAJOR ASSET OF INTEREST IN COMMERCE IN THE INDIA GREATER CHINA SEA BUT SOME ECONOMIES

    ITS GOOD THAT HERE GOV HAS MADE DECISIONS IN PROCUREMENT AND AREAS FOR FDIS IN VIEW OF THAT THE EXAMPLE IS LOAN PROCUREMENT DIRECT FROM STATE OWNED BANKS AND OTHER COMMERCIAL FINANCING AND OPERATIONAL AGREEMENTS TO AVOID STATE INTERESTS AND CAPTURE I AM SURE THERE WAS A RECENT PRONOUCEMENT THAT WAS WELL RECEIVED

    OFFICIALLY GONE///

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  12. My late father used to tell me that one of the deep rooted differences between KK and Kapwepwe was the decision to surrender Kalengwa Mine to the Chinese to redeem nkongole. No one knows the value of minerals they mined and to date Kalengwa remains a disused mine. Why would the Chinese be so good to us? We don’t have anything in common

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  13. Sri Lanka, is not in our LEAGUE.

    We have copper and a blossoming agric, tourism etc to pay for ouir commitments to any any one, be it China or IMF. Sri Lanka has only TEA to export.

    Is there any Zambian who can buy a house or a new car from his or her pocket without a mortgage, loans, unless one CK who can even evade ACC questioning.

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  14. Chinese are Good people and Businessmen Others may be wrong but its not the Whole Chinese Do not discriminate but rather understand and set commonalities There are some Chinese who may not be humble or Disciplined but its up to them to really understand Good business Business relationship that will last to the mutual benefit of them and Zambians They have historical perceptions and factual incidences but that was being cleansed and should not be seen to be repeated trust and respect and ethics lasts businesses

    To bequeath Zambian wealthy to a single ,smaller than Zambia, Chinese conglomerates may be not be true but like I have spoken above it entire a policy…

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  15. its entirely a national strategic policy policy issue to be enshrined long-term for the country and never changed by one party

    Lets support ethical investments and appose what is not in the interest without discrimination Chinese are good and friendly people sometimes even more sincere and for the interest so long as you understand and be on the know and leverage the Investments but do not discriminate Chinese are good people some may not be but do not assume that all are but set commonalities and know who may not behave well and deal with them individually

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  16. I am Officially recalled and closed my participation will try to resist the temptation that Lusaka times offers to comment whenever the link is open but been quiet educative conversing with people will on check for news ///

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  17. Hey man Jonathan, are you a Chinese in Zambia?
    Can’t understand what you are trying to say. Seriously no offence.

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  18. I am not a Chinese but I understand China and Chinese Businessmen from all regions of China Xiamen having been taught global Geopolitics Investments and FDIs flows and how they unwind

    So to do business with the world and china in particular as Zambia you need to spend time to study the environment and your positions for instance look at:

    CAVES 1971
    HYMER 1976
    DENG 2003 AND 2004
    WU AND CHEN 2001
    CAI 1999
    BUCKLEY ET AL 2007
    CENG AND MA 2007
    DOLLAR 2015

    Just a few for you to explore Zambians Case then apply the US CFIUS to them okay

    I been officially recalled do not tempt me to come back ,see you in 2030 maybe

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  19. I we tukwebe don’t make the poor Zambian difficult to live in their own country because nefimi sonko ( Tax ) fyabufi yet the economy of the country is bad . Way back companies weren’t paying taxes but you are taxing the poor Zambian double .

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  20. Ba UPND, but really it feels good to hear you nagging all day and becoming poorer and poorer. Honestly, why do you offload your anger on things you can’t change? Haven’t we made it very clear that UPND under the captaiship of Ichilema is as good as routing maggots in uncollected rubbish bin?
    By the time you will see what we tell you about HH incompetence, all that you wish for in life would have been taken by positive minded people lwenu.

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  21. I definitely see this coming to Zambia soonest than the blink of our eyes. The whole CB will be “leased” to the Chinese and if we refuse the Chinese will just come to squeeze our bolls I tell you. And some guzzler reduced to governor.
    Disaster!

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  22. If Zambia is to be auctioned off then we won’t be the first to go.
    South Africa and most of Africa have even more and bigger shopping malls called China Malls and China towns and cities specifically for Chinese.

    Education has enabled me to visit every corner of the world.

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  23. The party of negatives want Zambia not to develop! Losers! Go Zambia! You are doing well! He will NEVER be president! That is guaranteed!

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