1 00:00:00,259 --> 00:00:02,890 Speaker 1: Hey guys, Theresa Tang here, co hosts of the CN 2 00:00:02,900 --> 00:00:06,199 Speaker 1: A correspondent podcast. It's that time of the year. Our 3 00:00:06,210 --> 00:00:09,060 Speaker 1: team is taking a season break in December and coming 4 00:00:09,069 --> 00:00:13,289 Speaker 1: back with exciting new content for 2024. But before we 5 00:00:13,300 --> 00:00:16,829 Speaker 1: bid 2023 farewell, we want to revisit some of our 6 00:00:16,840 --> 00:00:20,430 Speaker 1: favorite episodes like this one. I sat down with Chani 7 00:00:20,440 --> 00:00:24,040 Speaker 1: Vadhan who's normally based in Jakarta as she headed to 8 00:00:24,049 --> 00:00:27,659 Speaker 1: Sri Lanka to explore the impact of China's massive Belt 9 00:00:27,670 --> 00:00:29,280 Speaker 1: and Road initiative on the country. 10 00:00:29,659 --> 00:00:32,650 Speaker 1: She even takes us to what could possibly be the 11 00:00:32,659 --> 00:00:36,918 Speaker 1: emptiest airport in the world. Take a listen. You're listening 12 00:00:36,930 --> 00:00:38,360 Speaker 1: to AC N A podcast. 13 00:00:39,950 --> 00:00:44,409 Speaker 1: BR I three letters that represent a trillion dollars and 14 00:00:44,418 --> 00:00:48,470 Speaker 1: hundreds of countries. It stands for China's Belt and Road initiative. 15 00:00:48,630 --> 00:00:52,360 Speaker 1: A global project that began 10 years ago. The ambitious 16 00:00:52,369 --> 00:00:55,810 Speaker 1: plan is to develop new trade routes linking China to 17 00:00:55,819 --> 00:00:58,639 Speaker 1: the rest of the world. But some argue it's making 18 00:00:58,650 --> 00:01:02,810 Speaker 1: countries dependent on Beijing in an unhealthy way. Case in point, 19 00:01:02,819 --> 00:01:03,689 Speaker 1: Sri Lanka, 20 00:01:04,000 --> 00:01:06,589 Speaker 1: I'm Teresa Tang. Welcome to part two of a three 21 00:01:06,599 --> 00:01:10,559 Speaker 1: part series on the BR I, our Indonesia correspondent Johnny 22 00:01:10,569 --> 00:01:14,199 Speaker 1: VVA left Jakarta to spend some time in Sri Lanka. 23 00:01:14,410 --> 00:01:17,169 Speaker 1: She joins me now to tell us what excessive borrowing 24 00:01:17,180 --> 00:01:20,849 Speaker 1: can do to vulnerable countries and what role Sri Lanka 25 00:01:20,860 --> 00:01:22,940 Speaker 1: plays in China's grand plan. 26 00:01:23,860 --> 00:01:27,309 Speaker 1: Hi, Chad. Hi, Teresa. How are you doing? I'm good. 27 00:01:27,319 --> 00:01:29,518 Speaker 1: You know, Sri Lanka, it's a country that's been on 28 00:01:29,529 --> 00:01:32,319 Speaker 1: my list for some time, but I've never actually been, 29 00:01:32,569 --> 00:01:35,239 Speaker 1: but for this assignment, you were sent to the island 30 00:01:35,250 --> 00:01:38,730 Speaker 1: nation of 22 million people, a country that faced a 31 00:01:38,739 --> 00:01:42,620 Speaker 1: political and economic crisis just a year ago. What was 32 00:01:42,629 --> 00:01:44,160 Speaker 1: it like on the ground when you were there? 33 00:01:44,790 --> 00:01:48,110 Speaker 1: Well, Teresa, I have been very lucky to be able 34 00:01:48,120 --> 00:01:51,120 Speaker 1: to have visited Sri Lanka twice. Actually, I was fortunate 35 00:01:51,129 --> 00:01:53,879 Speaker 1: to visit Sri Lanka prior to this assignment as well 36 00:01:53,889 --> 00:01:58,129 Speaker 1: and just having visited as a tourist, I did feel 37 00:01:58,139 --> 00:02:01,050 Speaker 1: that the pace was not as bustling as it was 38 00:02:01,059 --> 00:02:04,169 Speaker 1: several years ago. And, you know, we even passed by 39 00:02:04,180 --> 00:02:06,830 Speaker 1: some of the places that I had visited before and 40 00:02:06,839 --> 00:02:09,830 Speaker 1: a few of them were tourist spots and tourist shops 41 00:02:09,839 --> 00:02:10,609 Speaker 1: as well. Only 42 00:02:10,684 --> 00:02:13,095 Speaker 1: to see that they did not exist anymore and they 43 00:02:13,104 --> 00:02:16,585 Speaker 1: were either shut down or run down. But resilience also 44 00:02:16,595 --> 00:02:19,324 Speaker 1: certainly a key theme that we saw there. You know, 45 00:02:19,335 --> 00:02:22,024 Speaker 1: the Sr I Lankan Rupee has stabilized and elements like 46 00:02:22,035 --> 00:02:25,455 Speaker 1: overseas remittances and tourism figures have bounced back and they 47 00:02:25,464 --> 00:02:27,744 Speaker 1: are on the rise as well. I also want to 48 00:02:27,755 --> 00:02:30,875 Speaker 1: point out just to give a little context that remember, 49 00:02:30,883 --> 00:02:34,654 Speaker 1: Sr I Lanka went through this massive period of upheaval 50 00:02:34,663 --> 00:02:36,205 Speaker 1: and change last year. 51 00:02:36,582 --> 00:02:40,280 Speaker 1: Fact, it was the country's worst economic crisis in decades 52 00:02:40,292 --> 00:02:45,022 Speaker 1: since its independence. I believe so, protesters demonstrated and rallied 53 00:02:45,031 --> 00:02:48,442 Speaker 1: against the government for months and there were shortages, food 54 00:02:48,451 --> 00:02:52,242 Speaker 1: fuel and medicine and all of this ultimately leading to 55 00:02:52,251 --> 00:02:56,692 Speaker 1: the ousting of then President Gotay Rajapaksa and authorities of 56 00:02:56,701 --> 00:02:59,761 Speaker 1: course attributed at that time, all of these factors to 57 00:02:59,772 --> 00:03:02,401 Speaker 1: the COVID-19 pandemic. And however, 58 00:03:02,690 --> 00:03:06,049 Speaker 1: I must say that while the pandemic certainly did lend 59 00:03:06,059 --> 00:03:10,190 Speaker 1: some factors to this situation. Experts that I spoke to 60 00:03:10,199 --> 00:03:12,970 Speaker 1: while we were there did tell me that it was 61 00:03:12,979 --> 00:03:17,199 Speaker 1: caused and to put it very simply poor public finance 62 00:03:17,210 --> 00:03:20,429 Speaker 1: because it was caused because of poor public finance management, 63 00:03:20,600 --> 00:03:21,910 Speaker 1: which they say caused 64 00:03:22,014 --> 00:03:25,375 Speaker 1: the country to default on its foreign debt obligations. And 65 00:03:25,383 --> 00:03:29,695 Speaker 1: so they say that around 2020 2022 it all came 66 00:03:29,705 --> 00:03:30,934 Speaker 1: to a head and it sort of came to a 67 00:03:30,945 --> 00:03:34,214 Speaker 1: point where Sri Lanka just couldn't take it anymore off 68 00:03:34,225 --> 00:03:37,395 Speaker 1: the top. I mentioned that the BR I involves some 69 00:03:37,404 --> 00:03:40,764 Speaker 1: 100 countries around the world and Sri Lanka is one 70 00:03:40,774 --> 00:03:43,455 Speaker 1: of them. How does it all tie in though? Why 71 00:03:43,464 --> 00:03:45,595 Speaker 1: is China so interested in this country? 72 00:03:45,880 --> 00:03:49,789 Speaker 1: Well, to understand why China is so interested in Sr 73 00:03:49,809 --> 00:03:51,539 Speaker 1: I Lanka and I also should point out that it's 74 00:03:51,550 --> 00:03:54,369 Speaker 1: not just China, we need to sort of look at 75 00:03:54,380 --> 00:03:57,649 Speaker 1: Sr I Lanka's location. Now Sri Lanka is located just 76 00:03:57,660 --> 00:03:59,789 Speaker 1: south of India and of course, it shares not only 77 00:03:59,800 --> 00:04:02,979 Speaker 1: close trade relations with India who is its giant neighbor, 78 00:04:02,990 --> 00:04:07,300 Speaker 1: but it's actually globally placed in a very strategic location 79 00:04:07,309 --> 00:04:10,179 Speaker 1: which is at the crossroads of busy shipping. 80 00:04:10,429 --> 00:04:14,080 Speaker 1: To give you an example of how vital Sr I 81 00:04:14,089 --> 00:04:17,890 Speaker 1: Lanka's location is or how strategic it is. If we 82 00:04:17,899 --> 00:04:20,600 Speaker 1: look at a shipping vessel that wants to go to Europe, 83 00:04:20,609 --> 00:04:24,428 Speaker 1: for example, it will take 4.5 days less if it 84 00:04:24,440 --> 00:04:27,859 Speaker 1: were to leave from Colombo to reach there compared to 85 00:04:27,869 --> 00:04:31,070 Speaker 1: a vessel leaving from Singapore, for example, which is also 86 00:04:31,089 --> 00:04:34,190 Speaker 1: a major global shipping hub, a big difference. Yes, it 87 00:04:34,200 --> 00:04:34,609 Speaker 1: is 88 00:04:34,980 --> 00:04:38,820 Speaker 1: and a half days. So its geographic location and of course, 89 00:04:38,829 --> 00:04:42,220 Speaker 1: its deep harbors very much have made it of great 90 00:04:42,230 --> 00:04:45,519 Speaker 1: strategic importance from the earliest days of the ancient Silk 91 00:04:45,529 --> 00:04:49,040 Speaker 1: Road trade route to today's maritime Silk Road as well. 92 00:04:49,049 --> 00:04:52,589 Speaker 1: And this means that Sr I Lanka connects China with 93 00:04:52,600 --> 00:04:54,820 Speaker 1: Europe as well as it lies in the middle of 94 00:04:54,829 --> 00:04:57,719 Speaker 1: this silk route. And so Sr I Lanka and China 95 00:04:57,730 --> 00:04:59,309 Speaker 1: relations date back over 96 00:04:59,619 --> 00:05:04,049 Speaker 1: centuries, relations were fostered at the time by thriving trade 97 00:05:04,059 --> 00:05:07,529 Speaker 1: exchanges along this maritime silk route and far reaching cooper 98 00:05:07,540 --> 00:05:10,659 Speaker 1: operation as well in culture and knowledge. And so large 99 00:05:10,670 --> 00:05:15,390 Speaker 1: scale Chinese investments have poured into the country over many years, 100 00:05:15,399 --> 00:05:18,579 Speaker 1: from roads to ports and airports as it has of 101 00:05:18,589 --> 00:05:21,959 Speaker 1: course now emerged as a key sort of node in 102 00:05:21,970 --> 00:05:23,868 Speaker 1: Beijing's Belt and Road initiative. 103 00:05:24,329 --> 00:05:27,929 Speaker 1: So the two countries have a very long history when 104 00:05:27,940 --> 00:05:30,570 Speaker 1: you were there, did you get a strong sense of 105 00:05:30,579 --> 00:05:33,458 Speaker 1: Beijing's presence? And if you did, was it for better 106 00:05:33,470 --> 00:05:35,890 Speaker 1: or for worse? You know, how are locals taking to 107 00:05:35,899 --> 00:05:40,670 Speaker 1: the Chinese? Well, Teresa in the capital Colombo itself, being 108 00:05:40,678 --> 00:05:43,549 Speaker 1: aware of the history between both of them and sort 109 00:05:43,559 --> 00:05:45,829 Speaker 1: of all of the ties that they share. You can 110 00:05:45,839 --> 00:05:50,368 Speaker 1: certainly see large scale infrastructure projects all over the city 111 00:05:50,380 --> 00:05:50,829 Speaker 1: in the capital. 112 00:05:50,915 --> 00:05:54,496 Speaker 1: These are projects that are massive, both in terms of 113 00:05:54,505 --> 00:05:57,945 Speaker 1: scale of investment as well as scale of the structure itself. 114 00:05:58,036 --> 00:06:02,145 Speaker 1: Aside from infrastructure, there's also major Chinese presence in Sr 115 00:06:02,156 --> 00:06:07,055 Speaker 1: I Lanka's renowned gemstone market in Beira and there every day, 116 00:06:07,065 --> 00:06:10,645 Speaker 1: thousands of traders from all over the country and all 117 00:06:10,656 --> 00:06:13,156 Speaker 1: over the world as well. They gather their foreign buyers, 118 00:06:13,165 --> 00:06:15,705 Speaker 1: they gather there for business. While we were there, we 119 00:06:15,716 --> 00:06:17,406 Speaker 1: spoke to a Chinese gemstone trade 120 00:06:17,891 --> 00:06:20,032 Speaker 1: whose name was Kenny too. And he said that he 121 00:06:20,041 --> 00:06:22,921 Speaker 1: had been in Birla for three years. And he also 122 00:06:22,932 --> 00:06:25,212 Speaker 1: told me that he thought Sr I Lanka was the 123 00:06:25,221 --> 00:06:29,380 Speaker 1: best place for his business compared to China and Africa. 124 00:06:29,451 --> 00:06:31,842 Speaker 1: And then we also spoke to some locals there on 125 00:06:31,851 --> 00:06:35,481 Speaker 1: the ground, for example, like Akbar Kasim, who is the 126 00:06:35,492 --> 00:06:39,361 Speaker 1: vice president for the China Ford gem and jewelry Traders Association. 127 00:06:39,462 --> 00:06:43,130 Speaker 1: And he said that Chinese presence has promoted healthy competition. 128 00:06:43,141 --> 00:06:44,002 Speaker 1: Let's take a listen, 129 00:06:44,690 --> 00:06:49,109 Speaker 1: biggest changes, you know, to be Frank China, you know 130 00:06:49,660 --> 00:06:52,510 Speaker 1: China are coming like this, like tourists are coming in 131 00:06:52,519 --> 00:06:55,828 Speaker 1: here are like that. So it's good, you know, it 132 00:06:55,839 --> 00:06:59,570 Speaker 1: has helped us help the people here, the market, the economy, 133 00:06:59,579 --> 00:07:02,540 Speaker 1: you know it you know, every day. And if you 134 00:07:02,549 --> 00:07:04,209 Speaker 1: had come 10 years ago, you wouldn't have seen all 135 00:07:04,220 --> 00:07:05,109 Speaker 1: these buildings, you know, 136 00:07:05,700 --> 00:07:09,760 Speaker 1: any conversation around China and Chinese money these days, Chandni 137 00:07:09,769 --> 00:07:13,529 Speaker 1: almost always touches on the issue of dependency and some 138 00:07:13,540 --> 00:07:16,869 Speaker 1: have called Sri Lanka the poster child for China's so 139 00:07:16,880 --> 00:07:20,200 Speaker 1: called debt trap diplomacy. Would you agree with that? 140 00:07:20,619 --> 00:07:23,079 Speaker 1: Well, if we look at the investors in Sr I 141 00:07:23,089 --> 00:07:27,200 Speaker 1: Lanka today, China is the largest investor reports have said 142 00:07:27,209 --> 00:07:31,760 Speaker 1: it has funding an investment of nearly $15 billion. And 143 00:07:31,769 --> 00:07:34,170 Speaker 1: Sr I Lanka, of course, as you mentioned, has definitely 144 00:07:34,179 --> 00:07:37,670 Speaker 1: been the poster child for the so called debt trap 145 00:07:37,679 --> 00:07:41,809 Speaker 1: diplomacy as well. But as to whether it actually is 146 00:07:41,820 --> 00:07:42,559 Speaker 1: a debt trap or 147 00:07:42,654 --> 00:07:46,075 Speaker 1: not, we spoke to several experts while we were there 148 00:07:46,144 --> 00:07:48,445 Speaker 1: and to get to the root of this very specific 149 00:07:48,454 --> 00:07:50,894 Speaker 1: question itself and all of the people that we spoke 150 00:07:50,904 --> 00:07:54,434 Speaker 1: to told me that it certainly isn't a debt trap 151 00:07:54,445 --> 00:07:58,394 Speaker 1: of China's creation. Let's take a listen to Murtaza Jafferjee 152 00:07:58,404 --> 00:08:01,355 Speaker 1: who is Chairman of the Avoca Institute to sort of 153 00:08:01,364 --> 00:08:03,984 Speaker 1: place better context and sort of break it down better 154 00:08:03,994 --> 00:08:04,595 Speaker 1: for us 155 00:08:05,350 --> 00:08:09,529 Speaker 2: and I have been in various government committees over the 156 00:08:09,540 --> 00:08:12,220 Speaker 2: last 10 years and I'm kind of closer to the 157 00:08:12,230 --> 00:08:16,429 Speaker 2: facts that yes China is the largest bilateral creditor. I 158 00:08:16,440 --> 00:08:19,730 Speaker 2: believe that there is about 11 billion owed to bilateral 159 00:08:19,739 --> 00:08:22,350 Speaker 2: creditors of which a little bit about 5 billion is 160 00:08:22,359 --> 00:08:27,109 Speaker 2: owed to China. But our debt issues because out of 161 00:08:27,119 --> 00:08:30,220 Speaker 2: our total debt, about 55% of it is domestic debt 162 00:08:30,290 --> 00:08:33,770 Speaker 2: and the rest is external debt. So we have excessive 163 00:08:33,780 --> 00:08:34,598 Speaker 2: amount of debt. 164 00:08:34,909 --> 00:08:38,250 Speaker 1: You were in Colombo, but you also ventured out about 165 00:08:38,260 --> 00:08:41,590 Speaker 1: 40 kilometers to the town of Negombo. Is there a 166 00:08:41,599 --> 00:08:44,770 Speaker 1: different take on Chinese investment when you leave the city? 167 00:08:45,109 --> 00:08:48,820 Speaker 1: If we look at places outside of Colombo and people 168 00:08:48,830 --> 00:08:50,929 Speaker 1: that we talked to while we were there, 169 00:08:51,179 --> 00:08:55,359 Speaker 1: the focus is not so much about Chinese involvement or not, 170 00:08:55,369 --> 00:09:01,479 Speaker 1: but most people are still recovering from last year's upheaval. 171 00:09:01,500 --> 00:09:04,228 Speaker 1: And so the focus is very much on getting back 172 00:09:04,239 --> 00:09:07,059 Speaker 1: on track economically and what they can do for their 173 00:09:07,070 --> 00:09:11,218 Speaker 1: families and how they can continue to survive. You know, locals, 174 00:09:11,229 --> 00:09:13,719 Speaker 1: we talked to say that while it's clear that Sr 175 00:09:13,729 --> 00:09:14,520 Speaker 1: I Lanka appears 176 00:09:14,604 --> 00:09:17,054 Speaker 1: to be out of the woods and on its path 177 00:09:17,065 --> 00:09:20,694 Speaker 1: to recovery, prices of goods are still very high incomes 178 00:09:20,705 --> 00:09:24,005 Speaker 1: have not caught up. We spoke to a businessman who 179 00:09:24,015 --> 00:09:26,994 Speaker 1: ran his own shop, Fim Mohammed, his name was and 180 00:09:27,005 --> 00:09:29,905 Speaker 1: he said that right now people do not have money 181 00:09:29,914 --> 00:09:33,784 Speaker 1: to spend for unnecessary things. So people are limiting their 182 00:09:33,794 --> 00:09:37,944 Speaker 1: expenditure to only what is necessary essential items. And 183 00:09:38,030 --> 00:09:41,689 Speaker 1: so, for example, his business itself, he previously dealt in 184 00:09:41,700 --> 00:09:45,890 Speaker 1: imitation jewelry and gold plated jewelry. And right now, he's 185 00:09:45,900 --> 00:09:49,169 Speaker 1: had to shift his focus from that business to selling 186 00:09:49,179 --> 00:09:53,020 Speaker 1: other things such as school supplies for Children or toys, 187 00:09:53,030 --> 00:09:56,169 Speaker 1: plastic toys. In fact, and he sort of had to 188 00:09:56,179 --> 00:09:58,690 Speaker 1: adapt to the current situation he is in now. And 189 00:09:58,700 --> 00:10:01,380 Speaker 1: we also know from data that rising costs 190 00:10:01,565 --> 00:10:05,354 Speaker 1: have also pushed more people into poverty. According to the 191 00:10:05,364 --> 00:10:08,474 Speaker 1: World Bank, Sr I Lanka's poverty rate has almost doubled 192 00:10:08,484 --> 00:10:14,265 Speaker 1: from 13.1% in 2021 to nearly 25% last year. And 193 00:10:14,275 --> 00:10:18,505 Speaker 1: that's an addition of 2.5 million poor people. So we 194 00:10:18,515 --> 00:10:20,924 Speaker 1: also know according to this data that it could jump 195 00:10:20,934 --> 00:10:23,825 Speaker 1: to 27.4% this year. 196 00:10:25,190 --> 00:10:28,098 Speaker 1: All right, don't go anywhere more with Johnny Vaani coming 197 00:10:28,109 --> 00:10:30,789 Speaker 1: up after this, she's going to tell us what it 198 00:10:30,799 --> 00:10:34,159 Speaker 1: was like at the emptiest airport in the world. Yeah. 199 00:10:34,169 --> 00:10:36,689 Speaker 1: Can you imagine being the only person at an airport, 200 00:10:36,700 --> 00:10:37,570 Speaker 1: stay with us? 201 00:10:42,190 --> 00:10:45,380 Speaker 1: Are you looking for ways to make your money work harder, 202 00:10:45,539 --> 00:10:50,669 Speaker 1: tips on saving investing or retiring early perhaps, or advice 203 00:10:50,679 --> 00:10:54,169 Speaker 1: on big ticket decisions like buying a house or owning 204 00:10:54,179 --> 00:10:58,789 Speaker 1: a car. I'm Andrea Heng, host of cna's Top personal 205 00:10:58,799 --> 00:11:01,250 Speaker 1: finance podcast, Money Talks. And the, 206 00:11:01,330 --> 00:11:03,968 Speaker 1: these are some of the things we find out for 207 00:11:03,979 --> 00:11:07,210 Speaker 1: you each week I get a guest to share personal 208 00:11:07,219 --> 00:11:11,070 Speaker 1: stories and answer burning questions that help you make sense 209 00:11:11,080 --> 00:11:14,840 Speaker 1: of the latest financial trends. Go check out the complete 210 00:11:14,849 --> 00:11:18,989 Speaker 1: money talks playlist on the CN A app, Spotify, Google 211 00:11:19,000 --> 00:11:20,380 Speaker 1: or Apple podcasts. 212 00:11:26,599 --> 00:11:30,630 Speaker 1: Welcome back, Chaney. You visited Bustling Markets and also another 213 00:11:30,640 --> 00:11:33,530 Speaker 1: place that you would expect to be busy, but it 214 00:11:33,539 --> 00:11:36,900 Speaker 1: actually wasn't, I can't imagine going to an airport that's 215 00:11:36,909 --> 00:11:38,140 Speaker 1: pretty much deserted 216 00:11:38,409 --> 00:11:40,650 Speaker 1: that happened to you though. Can you explain what that 217 00:11:40,659 --> 00:11:43,369 Speaker 1: was all about? That's right, Teresa. And I must tell you, 218 00:11:43,380 --> 00:11:46,400 Speaker 1: it was a very surreal experience for us as well. 219 00:11:46,599 --> 00:11:51,219 Speaker 1: You know, we've always long associated airports with massive crowds 220 00:11:51,500 --> 00:11:53,659 Speaker 1: and even, you know, when we think of airports, you 221 00:11:53,669 --> 00:11:59,189 Speaker 1: just think about the massive checks, the queues for scans immigration. 222 00:11:59,450 --> 00:12:01,030 Speaker 1: I can't think of even one 223 00:12:01,130 --> 00:12:04,849 Speaker 1: instance where I would associate an airport to be completely, 224 00:12:04,859 --> 00:12:07,830 Speaker 1: or I would think of an airport as being completely empty. 225 00:12:08,030 --> 00:12:11,789 Speaker 1: And this was actually very much the situation for us 226 00:12:11,799 --> 00:12:14,709 Speaker 1: there at the time that we were there. At that 227 00:12:14,719 --> 00:12:17,219 Speaker 1: very moment, there was not a single passenger, there was 228 00:12:17,229 --> 00:12:20,659 Speaker 1: only airport staff, the airport, which was the Mattala Rajapaksa 229 00:12:20,669 --> 00:12:23,750 Speaker 1: International Airport. And it's located near the Hambantota port 230 00:12:24,179 --> 00:12:26,500 Speaker 1: at that time, it was built, you know, it's able 231 00:12:26,510 --> 00:12:29,150 Speaker 1: to handle a capacity of 1 million passengers per year 232 00:12:29,159 --> 00:12:35,179 Speaker 1: even today. But from December 2022 until July 2023. The 233 00:12:35,190 --> 00:12:40,849 Speaker 1: airport handled just a little over 67,000 passengers. Yes, we 234 00:12:40,859 --> 00:12:44,039 Speaker 1: were able to walk through again. The gates, immigration had 235 00:12:44,049 --> 00:12:48,340 Speaker 1: no staff, even the counters, all of them empty except 236 00:12:48,349 --> 00:12:50,439 Speaker 1: for very few if I'm not mistaken. 237 00:12:50,659 --> 00:12:53,780 Speaker 1: But the rest of the time, there was literally nobody 238 00:12:53,789 --> 00:12:57,579 Speaker 1: except us who were the outsiders so to speak. Reports 239 00:12:57,590 --> 00:13:01,679 Speaker 1: say that China has investment of nearly $15 billion in 240 00:13:01,690 --> 00:13:04,789 Speaker 1: Sr I Lanka And part of this investment is funneled 241 00:13:04,799 --> 00:13:10,109 Speaker 1: towards the Mattala Rajapaksa International Airport today. This airport is 242 00:13:10,119 --> 00:13:12,799 Speaker 1: widely considered to be a commercial failure and of course, 243 00:13:12,809 --> 00:13:14,419 Speaker 1: it has been dubbed the world's 244 00:13:15,075 --> 00:13:20,015 Speaker 1: airport. This airport Fascinatingly was built to be the country's 245 00:13:20,025 --> 00:13:23,465 Speaker 1: number two air transport hub meant to be supporting Sr 246 00:13:23,474 --> 00:13:26,854 Speaker 1: I Lanka's main airport. However, clearly that has not been 247 00:13:26,864 --> 00:13:29,385 Speaker 1: the case. It was built at a cost of over 248 00:13:29,395 --> 00:13:34,625 Speaker 1: $200 million. 190 million came from Chinese loans and the 249 00:13:34,635 --> 00:13:37,875 Speaker 1: airport began its international services in 2013. But then it 250 00:13:37,885 --> 00:13:38,625 Speaker 1: was stopped 251 00:13:38,979 --> 00:13:42,119 Speaker 1: just five years later in 2018 due to low demand 252 00:13:42,400 --> 00:13:46,650 Speaker 1: in 2022 flights resumed but with just one passenger airline 253 00:13:46,659 --> 00:13:50,880 Speaker 1: and that's sort of where we came in in 2023 254 00:13:50,890 --> 00:13:53,369 Speaker 1: to the situation today and we saw that it was 255 00:13:53,380 --> 00:13:56,400 Speaker 1: just empty and it's been dubbed a white elephant, so 256 00:13:56,409 --> 00:13:57,598 Speaker 1: to speak. In fact, 257 00:13:57,789 --> 00:14:00,520 Speaker 1: staff at the airport also told us that cost cutting 258 00:14:00,530 --> 00:14:06,179 Speaker 1: measures have been implemented such as limitations to electricity, drinking water, staff, transport, 259 00:14:06,190 --> 00:14:09,640 Speaker 1: purchases of equipment, staff, rotations are also being implemented. So 260 00:14:09,650 --> 00:14:13,358 Speaker 1: people work in shifts to keep the losses down. That's 261 00:14:13,369 --> 00:14:15,190 Speaker 1: quite a visit to an airport that I have never 262 00:14:15,200 --> 00:14:16,299 Speaker 1: heard of anything like that. 263 00:14:16,559 --> 00:14:19,739 Speaker 1: I want to talk about another of Sri Lanka's white elephants. 264 00:14:19,750 --> 00:14:25,530 Speaker 1: It's called the Lotus Tower built for an estimated $113 million. 265 00:14:25,789 --> 00:14:29,330 Speaker 1: And it has become a symbol of the disgraced Rajapaksa 266 00:14:29,340 --> 00:14:31,219 Speaker 1: clan's ties to Beijing too, right. 267 00:14:31,890 --> 00:14:34,570 Speaker 1: That's right. But Teresa, before I tell you about the 268 00:14:34,580 --> 00:14:36,770 Speaker 1: Lotus Tower, I do want to talk about the Rajapaksa 269 00:14:36,780 --> 00:14:39,700 Speaker 1: family a little bit. Now, the Rajapaksa family, which has 270 00:14:39,710 --> 00:14:43,590 Speaker 1: dominated Sri Lankan politics for nearly two decades have been 271 00:14:43,599 --> 00:14:48,030 Speaker 1: considered friendly to Beijing and they have been long considered 272 00:14:48,039 --> 00:14:51,590 Speaker 1: to have friendly ties to Beijing. Chinese investment in the 273 00:14:51,599 --> 00:14:55,010 Speaker 1: Rajapaksa family grew as well during the BR I era. 274 00:14:55,080 --> 00:14:59,900 Speaker 1: And reports have said that Mahinda Rajapaksa's 2015 campaign 275 00:15:00,007 --> 00:15:05,648 Speaker 1: during that time, over $7 million went directly from a 276 00:15:05,658 --> 00:15:11,057 Speaker 1: majority state owned Chinese corporation to Rajapaksa's campaign expenditures. And 277 00:15:11,067 --> 00:15:15,168 Speaker 1: you also have Mahinda Rajapaksa who served as president for 278 00:15:15,177 --> 00:15:19,088 Speaker 1: Sr I Lanka from 2005 to 2015. And he was 279 00:15:19,098 --> 00:15:22,908 Speaker 1: followed by his brother Gotabhaya Rajapaksa who served as president 280 00:15:22,918 --> 00:15:27,828 Speaker 1: after Mahinda until he was ousted in 2022. Now 281 00:15:28,125 --> 00:15:31,205 Speaker 1: going into the Lotus Tower, as I've mentioned earlier, it 282 00:15:31,216 --> 00:15:34,466 Speaker 1: was originally built to be the highest Broadcast tower in 283 00:15:34,476 --> 00:15:37,645 Speaker 1: South Asia. Now we had to pay a visit to 284 00:15:37,656 --> 00:15:41,635 Speaker 1: that tower. Its elevator is the fastest in the country 285 00:15:41,645 --> 00:15:45,205 Speaker 1: as well. Yeah, it took us 46 seconds to reach 286 00:15:45,216 --> 00:15:49,606 Speaker 1: 290 m high. Oh, gosh, really? I felt my ears 287 00:15:49,616 --> 00:15:52,476 Speaker 1: pop as we go up as well. And it was built, 288 00:15:52,486 --> 00:15:55,676 Speaker 1: I think it was at an estimated cost of $113 million. 289 00:15:55,685 --> 00:15:56,135 Speaker 1: But 80 290 00:15:56,244 --> 00:15:58,713 Speaker 1: $8 million came from a loan from China. And then 291 00:15:58,723 --> 00:16:00,833 Speaker 1: Sr I Lanka foot the rest of the bill. And 292 00:16:00,843 --> 00:16:05,333 Speaker 1: in 2022 annual revenue for the Lotus broadcasting, the Lotus 293 00:16:05,343 --> 00:16:08,864 Speaker 1: Colombo Lotus tower was estimated to stand at just a 294 00:16:08,874 --> 00:16:13,263 Speaker 1: little over $8 million which is far short of expectations 295 00:16:13,554 --> 00:16:16,504 Speaker 1: because of course, it didn't serve its purpose as a 296 00:16:16,513 --> 00:16:20,153 Speaker 1: broadcast tower. And so what was done with it is 297 00:16:20,164 --> 00:16:24,263 Speaker 1: that a company took over this tower, managing this tower 298 00:16:24,361 --> 00:16:27,811 Speaker 1: sort of it's now been repurposed for tourism activity. You know, 299 00:16:27,822 --> 00:16:30,572 Speaker 1: I spoke to Foreign Minister Ali Sabri who told me 300 00:16:30,581 --> 00:16:33,581 Speaker 1: that Chinese investment is very important because he said Sr 301 00:16:33,591 --> 00:16:36,202 Speaker 1: I Lanka needs investment and when Sr I Lanka was 302 00:16:36,211 --> 00:16:39,851 Speaker 1: in need of massive investment, China answered but he also 303 00:16:39,861 --> 00:16:43,080 Speaker 1: said that the next phase of development is going to 304 00:16:43,091 --> 00:16:46,341 Speaker 1: be growth. Let's take a listen and going forward for 305 00:16:46,351 --> 00:16:49,992 Speaker 1: the next pace of our development is growth oriented. Growth 306 00:16:50,002 --> 00:16:53,861 Speaker 1: means somebody need to put money into it. That means investment. 307 00:16:54,260 --> 00:16:58,010 Speaker 1: So I think amongst the major players right now in 308 00:16:58,020 --> 00:17:02,500 Speaker 1: the world, China has a hectic pocket. They are waiting 309 00:17:02,510 --> 00:17:05,718 Speaker 1: for investment. We are strategic part of their bi initiative. 310 00:17:05,729 --> 00:17:09,079 Speaker 1: So for us, Chinese investment are important and we look 311 00:17:09,089 --> 00:17:11,790 Speaker 1: forward for that investment. If we look at a map, 312 00:17:11,800 --> 00:17:15,119 Speaker 1: Chaney Sri Lanka sits just below India. They have a 313 00:17:15,130 --> 00:17:18,849 Speaker 1: very close relationship in terms of trade culture, religion. 314 00:17:19,300 --> 00:17:22,459 Speaker 1: But now that China is stepping up its interests, how 315 00:17:22,469 --> 00:17:26,069 Speaker 1: is Sri Lanka balancing the two? It's really caught between 316 00:17:26,079 --> 00:17:27,280 Speaker 1: two giants in a way? 317 00:17:27,598 --> 00:17:30,978 Speaker 1: That's right. It certainly is. And I asked Foreign Minister 318 00:17:31,009 --> 00:17:34,029 Speaker 1: Ali Sabri this very question itself. And his response to 319 00:17:34,038 --> 00:17:35,979 Speaker 1: me was that Sr I Lanka stands in the middle. 320 00:17:35,989 --> 00:17:38,129 Speaker 1: He said they don't take sides, they do not want 321 00:17:38,138 --> 00:17:40,538 Speaker 1: to tie up with any camp. He also said that 322 00:17:40,548 --> 00:17:42,798 Speaker 1: they don't want tension with anyone and they will not 323 00:17:42,808 --> 00:17:46,098 Speaker 1: allow anyone to use their backyard to threaten any country 324 00:17:46,109 --> 00:17:49,598 Speaker 1: or to build their military bases. But he did also 325 00:17:49,609 --> 00:17:51,338 Speaker 1: highlight that Sr I Lanka has 326 00:17:51,435 --> 00:17:55,234 Speaker 1: strategic relationship with all parties or rather Sr I Lanka 327 00:17:55,244 --> 00:17:57,294 Speaker 1: would be open to do business with everybody and they 328 00:17:57,305 --> 00:18:00,645 Speaker 1: cannot afford to take sides or choose to not work 329 00:18:00,655 --> 00:18:03,925 Speaker 1: with anyone. And he also highlighted to me that the 330 00:18:03,935 --> 00:18:07,025 Speaker 1: biggest market is us, for example, he said India, their 331 00:18:07,035 --> 00:18:10,444 Speaker 1: neighbor and their biggest trading partner as well last year. 332 00:18:10,454 --> 00:18:13,135 Speaker 1: In fact, during the crisis, India helped to bail them 333 00:18:13,145 --> 00:18:15,135 Speaker 1: out from a very difficult situation 334 00:18:15,530 --> 00:18:18,349 Speaker 1: where many expected China to do more. It was India 335 00:18:18,359 --> 00:18:21,149 Speaker 1: who came through. And then when you talk about China 336 00:18:21,160 --> 00:18:24,010 Speaker 1: and their relations with Sr I Lanka, China, he said 337 00:18:24,020 --> 00:18:26,989 Speaker 1: is their long standing friend. He called China a friend 338 00:18:27,000 --> 00:18:30,209 Speaker 1: both in international arenas. He said China stood by Sr 339 00:18:30,219 --> 00:18:32,079 Speaker 1: I Lanka in thick and thin and also because of 340 00:18:32,089 --> 00:18:34,859 Speaker 1: course they are investors in the country. So citing all 341 00:18:34,869 --> 00:18:38,630 Speaker 1: of these scenarios, Foreign Minister Ali Sabri said that all 342 00:18:38,640 --> 00:18:39,160 Speaker 1: of these countries 343 00:18:39,405 --> 00:18:42,234 Speaker 1: are important for Sri Lanka and then their relationship is 344 00:18:42,244 --> 00:18:45,334 Speaker 1: very transparent. He said, and he again made a point 345 00:18:45,344 --> 00:18:47,954 Speaker 1: to emphasize that they have always asked for peace and 346 00:18:47,964 --> 00:18:51,885 Speaker 1: full settlement in every dispute and all disputes, very diplomatic. 347 00:18:51,935 --> 00:18:54,685 Speaker 1: So knowing what they know, now, do you get the 348 00:18:54,694 --> 00:18:58,165 Speaker 1: sense that Sri Lankans would make the same choices again? 349 00:18:58,175 --> 00:19:00,405 Speaker 1: And what do you think is in store for them 350 00:19:00,415 --> 00:19:03,004 Speaker 1: as the Belt and Road initiative continues 351 00:19:03,949 --> 00:19:07,170 Speaker 1: again? I did talk to Foreign Minister Ali Sabri and 352 00:19:07,180 --> 00:19:09,520 Speaker 1: asked him point blank, you know, what does he think 353 00:19:09,530 --> 00:19:13,319 Speaker 1: of critics who claim that China's proposed initiative has been 354 00:19:13,329 --> 00:19:16,010 Speaker 1: used as a sort of a tool to create debt 355 00:19:16,020 --> 00:19:19,829 Speaker 1: traps for its recipient countries? And his response was that 356 00:19:19,839 --> 00:19:22,780 Speaker 1: he doesn't think so. And he said, he questioned me back. 357 00:19:22,790 --> 00:19:24,310 Speaker 1: He said, what are they going to achieve out of 358 00:19:24,319 --> 00:19:26,650 Speaker 1: the debt trap? You know, if you put your money 359 00:19:26,660 --> 00:19:29,718 Speaker 1: into any country. And I'm quoting from what he told me, 360 00:19:29,729 --> 00:19:31,969 Speaker 1: he said, if you put your money into any country 361 00:19:31,979 --> 00:19:32,489 Speaker 1: for investment 362 00:19:32,595 --> 00:19:35,936 Speaker 1: and it obviously means they want returns. So if you 363 00:19:35,946 --> 00:19:38,955 Speaker 1: want returns, you want to see that country succeed. And 364 00:19:38,965 --> 00:19:41,595 Speaker 1: so that's why he said it was important right now 365 00:19:41,605 --> 00:19:43,536 Speaker 1: for Sr I Lanka to take the right call in 366 00:19:43,666 --> 00:19:48,255 Speaker 1: taking those and making those important investment decisions. But as 367 00:19:48,265 --> 00:19:52,145 Speaker 1: to whether they would make the same choices, Foreign Minister 368 00:19:52,244 --> 00:19:55,254 Speaker 1: Ali Sabri did say that in hindsight, in terms of 369 00:19:55,265 --> 00:19:57,556 Speaker 1: investment of where they would or would not have put 370 00:19:57,566 --> 00:20:00,916 Speaker 1: their money in. Again, he did say that perhaps they 371 00:20:00,926 --> 00:20:01,135 Speaker 1: would 372 00:20:01,241 --> 00:20:04,682 Speaker 1: different choices made. He did say that yes, it was, 373 00:20:04,692 --> 00:20:07,702 Speaker 1: it was fascinating that he came forward to say that 374 00:20:07,802 --> 00:20:10,541 Speaker 1: and he also did say that they will no longer 375 00:20:10,552 --> 00:20:13,192 Speaker 1: go and borrow money. He said what Sr I Lanka 376 00:20:13,202 --> 00:20:17,182 Speaker 1: is asking now for is investment partnership and opportunities to 377 00:20:17,192 --> 00:20:20,921 Speaker 1: grow together. And he also said that that is a 378 00:20:20,932 --> 00:20:24,791 Speaker 1: lesson learned during the last year because of the crisis. 379 00:20:25,001 --> 00:20:28,351 Speaker 1: As I mentioned earlier, we have port city Colombo construction, 380 00:20:28,362 --> 00:20:29,660 Speaker 1: certainly still going on there. 381 00:20:29,887 --> 00:20:32,987 Speaker 1: And then we also know that Sr I Lanka's aspirations 382 00:20:32,998 --> 00:20:36,108 Speaker 1: to become a major logistics hub actually took a leap 383 00:20:36,118 --> 00:20:38,306 Speaker 1: forward with the launch of a project to build the 384 00:20:38,317 --> 00:20:42,907 Speaker 1: largest commercial and logistics complex in South Asia in the 385 00:20:42,917 --> 00:20:47,147 Speaker 1: Port of Colombo. And that is China merchants port holdings 386 00:20:47,157 --> 00:20:50,868 Speaker 1: holding 70% stake. While Sr I Lanka Ports Authority and 387 00:20:50,878 --> 00:20:55,958 Speaker 1: Access Engineering holding 15% stake each in this venture. Construction 388 00:20:55,968 --> 00:20:58,427 Speaker 1: of course set to begin in the coming months. 389 00:20:58,534 --> 00:21:04,234 Speaker 1: It's again expected to complete by 2025. And this alongside 390 00:21:04,244 --> 00:21:09,183 Speaker 1: with another project with India's Adani Group at Colombo Port 391 00:21:09,323 --> 00:21:14,734 Speaker 1: is expected to revolutionize the current shipping landscape in Sri Lanka. Wow, 392 00:21:14,744 --> 00:21:17,813 Speaker 1: it sounds like very exciting plans for the country and 393 00:21:17,823 --> 00:21:20,124 Speaker 1: they really show that the Belt and Road initiative is 394 00:21:20,134 --> 00:21:23,004 Speaker 1: plowing full steam ahead. Thank you very much for taking 395 00:21:23,013 --> 00:21:25,443 Speaker 1: us to Sri Lanka, Chaney. Thank you, Teresa. It was 396 00:21:25,453 --> 00:21:27,033 Speaker 1: lovely talking to you as always. 397 00:21:27,949 --> 00:21:30,640 Speaker 1: Well, after hearing about the BR I, maybe you want 398 00:21:30,650 --> 00:21:33,520 Speaker 1: to see it too. The TV version of this series 399 00:21:33,530 --> 00:21:36,688 Speaker 1: is available on CN A's youtube channel and catch up 400 00:21:36,699 --> 00:21:40,560 Speaker 1: with the correspondents anytime on CN A dot Asia. The 401 00:21:40,569 --> 00:21:44,170 Speaker 1: team behind this episode is Sa W Clara Ong, Christina 402 00:21:44,430 --> 00:21:47,040 Speaker 1: Robert and me, Teresa Tang. Until next time.