ECONOMYNEXT – The Chinese government will do its “utmost” to assist Sri Lanka to overcome economic and pandemic challenges, the China’s Speaker of Parliament has assured his Colombo counterpart this week.
Chinese Speaker Li Zhanshu said this at a meeting with Sri Lanka Speaker Mahinda Yapa Abeywardena in a virtual meeting on Tuesday (31), Sri Lanka’s parliament said in a statement.
According to the statement, Zhanshu had assured Abeywardena of China’s support at the “first diplomatic meeting held between the high-profile delegations” of the two parliaments.
China’s assurance comes as the island nation is struggling to face mounting challenges on both economic and public health fronts.
Though the 81 billion US dollar economy successfully repaid 1 billion dollars for matured sovereign bonds, it is still facing risk of default considering its forex reserves have depleted to an alarming low.
Sri Lanka’s sovereign rating is already in the junk or non-investment grade category and global rating agency S&P last week changed the rating outlook to negative citing difficulties in repaying external debts.
Sri Lanka received nearly 800 million US dollars from the International Monetary Fund (IMF) through Special Drawing Rights (SDR) this week and is expected to receive another 350 million US dollars from the Chinese Development Bank (CDB) to boost reserves.
However, the inflows failed to boost the local rupee currency. In fact, the rupee depreciated further after the inflows.
Though President Gotabaya Rajapaksa’s administration successfully faced the first wave of the pandemic last year, it is now struggling with a daily death toll of over 200 and infected cases of above 4,000.
China has helped Sri Lanka with more than 12 million doses of Sinopharm, an anti-coronavirus vaccine, when the island nation had few other options.
Though the government with the help of the military has been vaccinating nearly 2.5 percent of the population on a daily basis in one of the world’s speediest vaccination programmes, infection and death toll has not declined yet.
Government critics have said the ruling coalition did not place the order for vaccines when the pandemic was at a very slow pace. Though many countries started vaccines in the third quarter of last year, Sri Lanka got its first batch of vaccines only in the latter part of January.
The meeting between the parliamentary delegations of China and Sri Lanka was attended by a number of high profile officials of China including Deputy Speaker Wu Weihua, Finance Minister Liu Kun.
It was the first diplomatic discussion held by the Parliament of China since the COVID pandemic. (Colombo/Sep02/2021)