BEIJING, China: Chinese President Xi Jinping expressed hopes for deeper cooperation with Sri Lanka under the Belt and Road Initiative (BRI) as he congratulated the country’s new president, Anura Kumara Dissanayaka.
Dissanayaka, a Marxist leader, assumed office with a vow to restore public trust in politics, following Sri Lanka’s prolonged economic crisis, partly linked to Chinese-funded BRI projects.
In his message, Xi emphasized enhancing mutual political trust and expanding bilateral relations. He highlighted the potential for the BRI to bring tangible benefits to both nations, despite criticism from Western countries that the initiative traps developing nations in debt. Xi rejected these claims, focusing instead on the strategic cooperative partnership between China and Sri Lanka.
Sri Lanka’s economic collapse, exacerbated by high-debt infrastructure projects such as the Hambantota port, has led to ongoing financial challenges. In 2017, unable to repay a Chinese loan, Sri Lanka leased the Hambantota port to a Chinese firm for 99 years. The nation defaulted on its foreign debt in 2022, leading to severe shortages of essential goods.
China remains Sri Lanka’s largest bilateral creditor, holding $4.66 billion of its debt. Ongoing debt restructuring talks, backed by the International Monetary Fund, aim to stabilize the island nation’s economy.
