Courtesy Adaderana

China has assured that it stands ready to work with the relevant countries and institutions with regard to aiding Sri Lanka in terms of its debt. 

Speaking at a press conference yesterday (16 Jan.), the Spokesman for China’s Ministry of Foreign Affairs, Wang Wenbin, noted that China has been closely following the ongoing difficulties faced by the island nation, and has provided all possible assistance for both, Sri Lanka’s social and economic development, to the best of their capabilities. 

In response to a question raised pertaining to Sri Lanka’s debt restructuring and the impact China’s Communist Party’s recent visit has had on the matter, Wenbin noted that while a delegation of the Communist Party of China (CPC) recently visited the island, headed by Vice President Chen Zhou, he is unable to comment on the matter and thus referred the question to other relevant authorities. 

The Spokesman stated, however, that with regard to Sri Lanka’s dues to China, they support the relevant financial institutions in having consultations with Sri Lanka to seek a propoer settlement pertaining to the matter, adding that China stands ready to work with relevant countries and international financial institutions and continue to play a positive role in helping Sri Lanka navigate the situation, easing its debt burden and helping it achieve sustainable development. 

In the meantime, we hope and believe that Sri Lanka will work in the same direction and make independent efforts to uphold the legitimate rights and interests of foreign investment and financing partners, and maintain stability and credibility of its investment and financing environment”, Wenbin concluded his response. 

Sri Lanka’s debt restructuring currently stands at a crucial juncture, with agreements underway between the government of Sri Lanka and its bilateral creditors; China, Japan and India. The island nation is also awaiting board approval for the International Monetray Fund (IMF) bailout, which is likely to be obtained in the first quarter of 2023, based on the aforementioned agreements.