Sri Lanka Expects Help from Chinese Debt Reorganization Amid Crisis

Translated by: MOS Education Team – Delmont

On Jan. 9th, the president of Sri Lanka asked visiting Chinese Foreign Minister Wang Yi for the reorganization of its loans and obtain preferential credit for imports of essential goods, as the island nation struggles in its worst economic crisis, partially due to Communist China-financed projects that have non-revenue producing.

It is known that debt-ridden Sri Lanka foreign reserves are down to around $1.6 billion, barely enough for a few weeks of imports. The infrastructure projects were built with Communist Chinese loans, including a southern seaport and airport as well as a wide network of roads that don’t make money.

It has foreign debt obligations to China exceeding $7 billion in 2022, including repayment of bonds worth $500 million in January and $1 billion in July.

However, Wang Yi said in his speech that the current ongoing and uncontrolled pandemic compounding the difficulties of economic recovery in all countries, Sri Lanka and Communist China must strengthen their cooperation on the anniversary of the diplomatic relations, but he did not elaborate nor announce any relief measures.

Proofread/posted by: Redd

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