Mr Wang’s visit is crucial as it comes during Sri Lanka’s worst financial crisis, with inflation rising to record levels, food prices soaring and foreign exchange reserves running dry. The Sri Lankan President asked China for help in restructuring debt repayments, and a concessional trade credit scheme for imports. In October last year, the Sri Lankan authorities asked India for a credit of US$500 million for fuel. The Sri Lankan commercial high court blocked payment for it and, in turn, China blacklisted the Sri Lankan state bank. Sri Lanka’s central bank has repeatedly assured all debt repayments will be met and said funds for the January ISB has already been allocated.

Source: Philippine Daily Inquirer January 10, 2022 21:56 UTC