How will Colombo’s economic relations with Beijing proceed in the post-default era? By Umesh Moramudali and Yunnan Chen Sri Lankan President Anura Kumara Dissanayake’s visit to Beijing from January 14 to 17 is his second foreign trip following a mission to India last year. While his trip to India reflected its status as Sri Lanka’s major economic partner, his trip…
This article summarises the findings of the first issue of the ‘Sri Lanka-China Economic Brief’ published by Arutha China has become Sri Lanka’s largest foreign creditor, foreign investor, and top importing source in just two decades. After Sri Lanka’s sovereign default, China remained crucial to Sri Lanka’s economic recovery and External Debt Restructuring (EDR) process. …
While Sri Lanka’s debt obligations to China have often been misinterpreted, the fact remains that China is Sri Lanka’s largest bi-lateral creditor. For this very reason, China plays a key role in Sri Lanka’s debt restructuring process. A review of Chinese lending history in the country, particularly its recent offering of direct budgetary financing in 2018…
