China cautions Sri Lanka on IMF deal

China has cautioned Sri Lanka on the negotiations with the International Monetary Fund (IMF) saying it could impact talks with China.

China’s Ambassador Qi Zhenhong was quoted as saying that Sri Lanka’s talks with the IMF will have an impact on Sri Lanka’s attempt to secure a US $ 2.5 billion loan from China.

Ambassador Qi Zhenhong was quoted as telling a group of journalists today that China was closely monitoring the negotiations to understand the terms and conditions of the deal with the IMF.

Qi Zhenhong has also said that China’s support to Sri Lanka will not be based on a particular party or Government. but the people of Sri Lanka.

The IMF has decided to support Sri Lanka’s efforts to overcome the current economic crisis by working closely with the authorities on their economic program.

Issuing a statement this week the IMF said that it will engage with all stakeholders in support of a timely resolution of the crisis.

During the 2022 IMF and World Bank Spring Meetings in Washington, D.C., IMF Managing Director Kristalina Georgieva and other senior members of IMF management met with a Sri Lankan delegation, led by Finance Minister Ali Sabry and Central Bank of Sri Lanka Governor Nandalal Weerasinghe, and discussed policy actions to address economic challenges.

The IMF team for Sri Lanka held initial technical discussions on an IMF-supported program with the delegation.

“During April 18–22, the Sri Lankan delegation and the IMF team had fruitful technical discussions on the authorities’ request for an IMF-supported program. The discussions covered recent economic and financial developments in Sri Lanka, the need for implementing a credible and coherent strategy to restore macroeconomic stability, and the importance of stronger social safety nets to mitigate the adverse impact of the current economic crisis on the poor and vulnerable. The IMF team welcomed the authorities’ plan to engage in a collaborative dialogue with their creditors,” Masahiro Nozaki, mission chief for Sri Lanka had said.

Going forward, Masahiro Nozaki said the IMF team will support Sri Lanka’s efforts to overcome the current economic crisis by working closely with the authorities on their economic program, and by engaging with all other stakeholders in support of a timely resolution of the crisis. (Colombo Gazette)

5 COMMENTS

  1. China should not encourage the people’s laziness and stupidity. Sri Lanka’s foreign debt is a by product of their political system, lifestyle and useless mindset.

    In China people do not waste time or create unrest by talking religion, language or caste. But in South Asia, leaders use language and religion to keep their power. This is a big loophole in South Asia and it will continue to impact the economy negatively. Riots and wars destroy investments, skills and lives, perfect examples are 1983 riots and decades long civil war. Extended religious activities encourages people’s laziness, example poya day every month. Sri Lanka has too many public holidays. This will impact the economy negatively.

    Worst of all, Sri Lankan leaders listen to Buddhist monks above others. Those Buddhist monks don’t even earn a rupee but beingl dependent on others. However, Sinhalease leaders put those Buddhist monks on their head and dance. Overall, Sri Lanka’s political structure is wrong. As long as voting system exists, religion and language will continue to undermine the country. I firmly believe that the western powers would not have introduced the democratic system, if there was a tiny chance for South Asia to come up above the western countries by using the democratic system.

    People can send the politicians home, but the million dollar question is who will send the lazy people home who only work a few hours a day as government employees? Who will send the dishonest teachers home who teach as little as possible at schools to make more money from tuition classes? Who will send the corrupt police customs officials home who get bribes? The people fool themselves by overlooking their own lies, laziness and dishonesty; meantime they are hoping to become a developed country by changing the leaders. The political leaders didn’t fall from the sky, they came from the community. Therefore, Sri Lanka needs tough leader who can change the people’s mindset; otherwise Sri Lanka cannot come out of the current predicament.

  2. Sri Lanka is like a sex slave, trying to appease China’s desires. Look at the predicament of Zambia and Congo after taking loan from China, and have gone bankrupt. Look at the Sea Leach farm in the East Sri Lanka, run by Chinese. They behave as if they already own our country.

  3. Chinese loans that have no proper documentation submitted to the IMF as part of Sri Lankan talks will not be payed. Full audit of Chinese loans must be done. If China doesn’t come to the table with the IMF the loans will be thrown out and written off.

    Sri Lanka needs all stolen money repatriated to get out of this crisis…

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