The opposition charges the CB chief has no right to make such criticism.

When contacted, Mahendran has told ‘Sathhanda’ that being a person responsible for the entire economy, he was accountable to tell the truth to the country, despite whatever opinions the politicians were having.

He said that what he had criticized was not the Chinese government’s policy, but Sri Lanka’s shortsightedness in accepting loans.

According to him, when China grants a loan, the receiver gets 90 per cent only, as 10 pc is set aside to cover the insurance, but interest has to be paid by the receiver for 100 pc.

Also, China gives short-term repayment loans on high interest, the CB governor said, questioning if he shouldn't tell the truth about not even the interest being covered from the income from Hambantota port, Mattala airport projects.

However, countries like Japan grant long-term repayment loans at very low interest of around 0.7 pc.

Mahendran added that foreign exchange was important for a country like China, whose per capita income is around 2,000 dollars, and that is why it is giving loans Asian and African countries on such conditions.