Sri Lankan Prime Minister’s Visit to China
The Sri Lankan Prime Minister, Dinesh Gunawardena, is currently on a crucial six-day visit to China, where he has held meetings with Chinese President Xi Jinping and Premier Li Qing.
Agreements and Assistance
- China has pledged to assist Sri Lanka in building its strategic deep sea port and an airport in Colombo.
- Nine new agreements have been signed between the two countries to support Sri Lanka’s efforts in restructuring and reviving its economy.
- China will aid in restructuring Sri Lanka’s external debt, a key requirement for the $2.9 billion IMF bailout.
Development Projects
Gunawardena’s office announced that China will provide assistance in developing Colombo International Airport and Hambantota port. Hambantota was leased to a Chinese state-owned company in 2017 for $1.12 billion.
Despite concerns raised by India about potential security risks, Sri Lanka has assured that its ports will not be used for military purposes.
Xi Jinping’s Commitment
During the meeting with Gunawardena, President Xi reaffirmed China’s commitment to strengthening ties with Sri Lanka. He emphasized the importance of mutual assistance and friendship, echoing the spirit of the Rubber-Rice Pact.
China, being Sri Lanka’s largest bilateral lender, holds a significant portion of the country’s external debt. The visit coincided with the IMF’s review of the bailout program.
