China assures Lanka of 'steadfast support' on its road to economic recovery

The crisis-hit country owes $7.1 billion to bilateral creditors, with USD 3 billion owed to China

China, China economy

Photo: Bloomberg


Listen to This Article

China's Vice Minister of Foreign Affairs Sun Weidong has assured Sri Lankan President Ranil Wickremesinghe of steadfast support to overcome the unprecedented economic crisis the island nation is going through.
Weidong met President Wickremesinghe on Tuesday and expressed keen interest in exploring opportunities to strengthen the bilateral relations while reiterating China's steadfast support for Sri Lanka in its ongoing economic recovery, an official statement on Wednesday said.
Sri Lanka is in talks with China along with other bilateral creditors to negotiate debt restructuring as part of an IMF-backed plan to reduce and manage the island nation's debt.
The crisis-hit country owes USD 7.1 billion to bilateral creditors, with USD 3 billion owed to China.
As President Wickremesinghe expressed his sincere appreciation for the unwavering assistance provided by China during this critical period, it highlights China's dedication to fostering closer ties with Sri Lanka on various fronts, the statement said.
Meanwhile, The Asian Development Bank (ADB) approved a USD 350 million special policy-based loan to provide budget support to the cash-strapped country for its economic stabilisation.

Also Read

Sri Lanka concludes debt restructuring talks with Japan: Wickremesinghe

Sri Lankan police quiz Gotabaya Rajapaksa over president's house cash

EAM discuss cooperation in infra, connectivity with Lankan counterpart

Sri Lanka cabinet approves incentives to businesses at Colombo Port City

Ahead of Jaishankar's visit, Sri Lanka Prez assures to fully implement 13A

Germany arrests 7 alleged members of network that helped Islamic State

Nepal PM Dahal to seek energy, new air route deals on India visit

Sports leaders meet amid uncertainty over Russians playing Olympics 2024

Europe's fintech unicorn Taxfix lays off 120 employees to cut costs

US judge orders lawyers not to use ChatGPT-drafted content in court

The programme approved by the Manila-based ADB is part of a broader package of financial assistance anchored by the International Monetary Fund's (IMF) Extended Fund Facility for the country.
The IMF extended a nearly USD 3 billion bailout facility to debt-ridden Sri Lanka in March to help stabilise the country's economy after it was jolted by a devastating economic crisis last year.
India has also extended its under-utilised USD 1 billion credit line to the debt-ridden country for another year to help it procure much-needed food, medicine and other essential items.
In April 2022, Sri Lanka declared its first-ever debt default, the worst economic crisis since its independence from Britain in 1948, triggered by forex shortages that sparked public protests.
Months-long street protests led to the ouster of the then-president Gotabaya Rajapaksa in mid-July. Rajapaksa had started the IMF negotiations after refusing to tap the global lender for support.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: May 31 2023 | 2:51 PM IST

Explore News