Sri Lanka president to visit China as debt talks progress. As the crisis-hit nation advances in debt restructuring discussions with its largest lender, Sri Lankan President Ranil Wickremesinghe will travel to China next week, a source in his office told Reuters on Friday.
Following the ouster of his predecessor due to a public revolt sparked by the global financial crisis, Wickremesinghe assumed office in July of last year. His first trip to China since then will be from October 15 to October 19 in Beijing.
Wickremesinghe, who also serves as finance minister, oversees Sri Lanka’s effort to manage its massive debt load and maintain funding under an IMF program worth $2.9 billion.
He will participate in a Belt and Road Forum in Beijing, commemorating the initiative’s 10th anniversary, and be led by Chinese President Xi Jinping to build international energy and infrastructure networks.
The insider, who wished to remain unnamed because he was not authorized to talk with the media, predicted that Wickremesinghe would encounter Xi outside the forum. The source said the Sri Lankan president would meet with China’s finance and foreign ministries.
Requests for comment from the president’s media office and the Sri Lankan foreign ministry were not immediately fulfilled. Around $7 billion is owed by Sri Lanka to bilateral and commercial Chinese lenders.
On Thursday, an agreement covering nearly $4.2 billion in outstanding debt was agreed with the Export-Import Bank of China. However, negotiations are ongoing to establish a debt restructuring plan with Japan, India, and other significant bilateral creditors.
In May of last year, Sri Lanka defaulted on its foreign debt when its dollar reserves decreased, so the 22 million-person island nation could no longer afford to pay for imports of goods like gasoline and medication.
Sri Lanka must agree with its creditors to advance its first review of the IMF program, which would release a second tranche of around $334 million. In March, the initial release was made. The nation has been a significant recipient of financing under China’s Belt and Road infrastructure initiative, aiding it in constructing highways, ports, airports, and coal power plants.
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