Xi extends China’s no ‘strings’ support to embattled Sri Lanka

By Riyaz ul Khaliq

ISTANBUL (AA) - China’s President Xi Jinping said Friday that Beijing will extend support to Sri Lanka “without any political strings attached.”

“China will continue to provide assistance to Sri Lanka and help the country cope with difficulties concerning its society and people's livelihood,” Xi told Sri Lankan President Ranil Wickremesinghe in Beijing.

Beijing will import more from the island nation, he said, according to a readout of the meeting released by the Chinese Foreign Ministry.

Wickremesinghe is in the Chinese capital where he attended a two-day Belt and Road Forum for International Cooperation which concluded Wednesday.​​​​​​​

Xi’s statement came days after Sri Lanka reached an agreement with the Export-Import Bank of China on $4.2 billion worth of debt.

The South Asian island nation is moving past its worst financial crisis in decades -- hampered by economic mismanagement and the effects of the coronavirus pandemic.

It declared bankruptcy last year and as of September 2023, Sri Lanka had $35.1 billion in foreign debt, of which 19% was owed to China, 7% to Japan and 5% to India.

International Monetary Fund (IMF) said Sri Lanka's public debt was at 128% of its gross domestic product at the end of last year, which is "unsustainable."

Earlier this year, Sri Lanka received the first $330 million tranche of the IMF's nearly $3 billion bailout meant to support the island country.

“China is glad to see Sri Lanka becoming a commercial center in the Indian Ocean,” Xi told the Sri Lankan president, assuring Wickremesinghe that Beijing will “import more quality and specialty products from Sri Lanka.”