Prime minister wraps up China visit
A joint statement said on Sunday that China will play a “positive role” in easing Sri Lanka’s financial difficulties and its bid to achieve “debt sustainability,” while Colombo will accelerate the formulation of a BRI cooperation plan to advance Beijing’s projects in the island nation.
As Sri Lankan Prime Minister Dinesh Gunawardena wrapped up his official weeklong visit to China, the joint statement highlighted the agreements discussed during his talks with Chinese President Xi Jinping and Premier Li Qiang besides attending the Boao Forum for Asia Annual Conference.
The joint statement said, “The Chinese side expresses its readiness to continue supporting its financial institution in actively consulting with Sri Lanka, maintaining friendly communication with other creditors, and playing a positive role in the International Monetary Fund (IMF) to help Sri Lanka ease its financial difficulties and achieve debt sustainability.”
During Gunawardena’s visit, both countries agreed to work together to deepen high-quality Belt and Road cooperation, accelerate the formulation of a Belt and Road cooperation plan, and make all-out efforts to advance the Colombo Port City project and the integrated development project of Hambantota Port as signature projects of Belt and Road cooperation between the two countries, the joint statement said.
Belt and Road Initiative (BRI) is China’s ambitious multi-country varied infrastructure project. According to the joint statement, Sri Lanka has agreed to accelerate the formulation of a BRI cooperation plan, notwithstanding criticism of its financial viability.
Sri Lanka said it would negotiate the settlement of its Chinese loans on comparable terms with other countries that have provided them.
The development comes days after the IMF, which concluded its second review of the USD 2.9 billion bailout with Sri Lanka earlier this month, said reaching an agreement with the country’s commercial creditors, the international bondholders and China Development Bank was the key to achieving debt sustainability.
This was the first visit by a top Sri Lankan leader to Beijing after Colombo put a moratorium on recurring visits by Chinese research ships to Sri Lankan ports, reportedly due to India’s security concerns.
Colombo’s move had drawn angry reactions from Beijing.
Earlier this month, however, Sri Lanka said it would allow foreign offshore research ships for replenishments at its ports despite a one-year ban on such vessels.
Some of China’s infrastructure investments in Sri Lanka drew global concerns over Beijing’s debt diplomacy especially after China took over Hambantota port on a 99-year debt swap.