Under debt duress, Uganda could lose international airport

Colombo, Sri Lanka – Experts have now started raising the possibility that Uganda might lose the Entebbe International Airport over foreign debts, as
the media was suggesting the events, reminiscent of when the Port of Hambantota in Sri Lanka was lost due to debts, will lead to losing the airport to the debtors.

The Education Secretary of the Frontline Socialist Party (FSP), Pubudu Jayagoda, said the Entebbe International Airport said that Uganda might
not be able to repay a $207 million loan it had borrowed from China on time, spreading rumors amongst media that the airport might be lost at any
given time.

Beijing, however, categorically denied the accusations. He explained that in case the repayment of loan obligations is not met, various things have to be paid as ransom, adding that there would be a property grab in case a failure of paying was to take place.

According to Yasiru Ranaraja, a co-founder of the Belt and Road Initiative Sri Lanka (BRISL), the media was suggesting that China will take over the
Ugandan Airport after Beijing rejected Kampala’s proposals to re-engage its debt as the airport was not profiting as it was.

Jayagoda said China tends to ask for taking possession of highly strategic and important facilities as a precondition for approving a loan to a country.

“The control of the Colombo Port City is with China, the South Terminal of the Port of Colombo had to be handed over to China and now some
valuable lands in Colombo city have been transferred to a company called Selandiva. It is reported that a significant portion of it will be taken by
China, along with seven acres of valuable land near the port,” Jayagoda said.

He said that an agreement has been signed to hand over the oil store complex near the Trincomalee port to India as a precondition for obtaining
a loan from China and India.

He referred to the threat of repayment inability on Sri Lanka, which includes the risk of massive destruction and alienation of the country”s
national resources, public resources, and public property.

Jayagoda added that there must be a stop to borrowing and there should be an investment in infrastructure to avoid falling under the debt trap,
saying that “what happens to Uganda today could happen to Sri Lanka tomorrow.”