Sri Lanka in talks with China and official creditors to reach agreement

Sri Lanka is in talks with China and official creditors to reach an agreement, President Ranil Wickremesinghe said.

He said that Sri Lanka has now concluded the second round of discussions with the International Monetary Fund (IMF) IMF Board of Directors and received confirmation that the program guiding Sri Lanka is on the right track.

“Currently, negotiations are underway with China to finalize these arrangements. Additionally, discussions are on-going with both Paris Club and non-Paris Club member countries, as well as with official creditors? committees, to reach agreements,” he added.

The President said this marks a significant step towards lifting the country out of the crisis it has faced.

“However, our journey does not end here. It is imperative that we reflect on the reasons behind our economic challenges,” he added.

The President also noted that historically, Sri Lanka has not cultivated a robust export industry despite numerous opportunities.

“In 1979, during my visit to China, the country was economically less developed than Sri Lanka. Today, China supports us financially. Similarly, in 1991, as Minister of Industry, I met with Vietnam?s Industry Minister, who sought advice on attracting investments, earning foreign exchange, and establishing economic zones. Now, if I were to visit Vietnam, I would seek advice from them,” he said.

The President said that Sri Lanka must depart from the old system and embrace a new paradigm.

He said the country’s trajectory should mirror the progress achieved by nations like India and Bangladesh, fostering a competitive economy.? (Colombo Gazette)