China assures Sri Lanka of ‘steadfast support’ on its road to economic recovery

COLOMBO: China’s vice minister of overseas affairs Solar Weidong has assured Sri Lankan President Ranil Wickremesinghe of ‘steadfast help’ to beat the unprecedented financial disaster the island nation goes by way of.
Weidong met President Wickremesinghe on Tuesday and expressed eager curiosity in exploring alternatives to strengthen the bilateral relations whereas reiterating China’s steadfast help for Sri Lanka in its ongoing financial restoration, an official assertion on Wednesday mentioned.
Sri Lanka is in talks with China together with different bilateral collectors to barter debt restructuring as a part of an IMF-backed plan to cut back and handle the island nation’s debt.
The crisis-hit nation owes $7.1 billion to bilateral collectors, with $3 billion owed to China.
As President Wickremesinghe expressed his honest appreciation for the unwavering help offered by China throughout this vital interval, it highlights China’s dedication to fostering nearer ties with Sri Lanka on numerous fronts, the assertion mentioned.
In the meantime, The Asian Improvement Financial institution (ADB) authorized a $350 million particular policy-based mortgage to supply finances help to the cash-strapped nation for its financial stabilisation.
The programme authorized by the Manila-based ADB is a part of a broader bundle of monetary help anchored by the Worldwide Financial Fund’s (IMF) Prolonged Fund Facility for the nation.
The IMF prolonged a virtually $3 billion bailout facility to debt-ridden Sri Lanka in March to assist stabilise the nation’s economic system after it was jolted by a devastating financial disaster final yr.
India has additionally prolonged its under-utilised $1 billion credit score line to the debt-ridden nation for an additional yr to assist it procure much-needed meals, drugs and different important gadgets.
In April 2022, Sri Lanka declared its first-ever debt default, the worst financial disaster since its independence from Britain in 1948, triggered by foreign exchange shortages that sparked public protests.
Months-long road protests led to the ouster of the then-president Gotabaya Rajapaksa in mid-July. Rajapaksa had began the IMF negotiations after refusing to faucet the worldwide lender for help.

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