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March 2018

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Funding war for influence begins!

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Funding war for influence begins!

Post by sashimaal on Sat Sep 03, 2016 9:12 am

The United States (US) government has called tit-for-tat on the Chinese government’s promise to commit US$ 5 billion in foreign direct investments (FDIs) to Sri Lanka over the next 5 years, by indicating an interest to provide a multi-million-dollar grant.

Speaking at the annual general meeting of the Industrial Association of Sri Lanka last evening, Foreign Affairs Deputy Minister Dr. Harsha de Silva said that US Assistant Secretary of Commerce Arun Kumar had dropped by for lunch yesterday to discuss the possibility of providing hundreds of millions of dollars in funding to Sri Lanka.

“He said that US is not China, and they can’t direct companies to come here or to build bridges or get universities to come here. But at the same time, the US can help us create the environment that would induce investors from the US and other places to come here and invest,” Dr. de Silva said.

He noted that US government Assistant Secretaries don’t just “drop by”, an indication, according to him, which showed an improvement in Sri Lanka’s foreign relations.

Mirror Business yesterday quoting the Chinese Ambassador in Colombo reported that China was willing to invest US$5 billion in Sri Lanka over the next 5 years with the blessing of the Sri Lankan government.

Even though the US is Sri Lanka’s largest export market, it had averaged just US$ 60 million in annual FDIs in recent years, compared to over US$ 400 million by China.

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Re: Funding war for influence begins!

Post by soileconomy on Sun Sep 04, 2016 7:24 pm

The conditions that may put by USA in a hidden manner will be more harmful than paying few points of higher interest for Chinese funds.


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