01-11-2022, 10:23 AM
![[Image: sri_lanka_-_pixabay.jpg]](https://media.thevibes.com/images/uploads/covers/March_2021/_large/sri_lanka_-_pixabay.jpg)
COLOMBO – Cash-strapped Sri Lanka sought to reschedule its huge Chinese debt burden in Sunday talks with visiting foreign minister Wang Yi, the president’s office said.
The island’s tourism-dependent economy has been hammered by the Covid-19 pandemic and its depleted foreign exchange reserves have led to food rationing at supermarkets and shortages of essential goods.
Key ally China is Sri Lanka’s biggest bilateral lender and Wang’s visit comes after a warning from international ratings agencies that President Gotabaya Rajapaksa’s government could be on the brink of default.
“The President pointed out that it would be a great relief if debt payments could be rescheduled in view of the economic crisis following the pandemic,” Rajapaksa’s office said in a statement.
There was no immediate comment from the Chinese embassy in Colombo.
Sri Lanka’s foreign reserves had dropped to just US$1.5 billion (RM6.3 billion) at the end of November – enough to pay for only about a month’s worth of imports.
The island’s main energy utility began rationing electricity on Friday after running out of foreign currency to import oil for its thermal generators.
China accounted for about 10% of Sri Lanka’s US$35 billion foreign debt as of April 2021, government data shows.
- More -