The present political and economic situation in Sri Lanka was the main topic of conversation, according to U.S. Ambassador to Sri Lanka Chung, who said that ideas on trade, investment, and development were also brought up.
The Chinese Ambassador to Sri Lanka Qi Zhenhong met with his American colleague Julie Chung in Colombo on June 13 and discussed “wide areas of common interest” and vowed assistance for the island nation’s terrible economic situation, reports the New York Times.
When Sri Lanka gained independence from the British in 1948, it was struck by its most significant economic crisis since.
Food, medication, cooking gas and other fuels, toilet paper, and even matches are in limited supply as a result of the economic crisis, and Sri Lankans are forced to stand in long queues outside businesses to purchase gasoline and cooking gas.
At the Chinese embassy on June 13, Ambassador Qi Zhenhong met with U.S. Ambassador Julie Chung for a pleasant chat about matters of common interest. According to a tweet from the Chinese embassy there, Sri Lanka may be able to overcome its present problems with Chinese assistance.
According to U.S. Ambassador Chung’s remarks, talks during the conference focused on Sri Lanka’s present political and economic condition and claimed that trade, investment, and development ideas were exchanged.
Both envoys agreed that they needed to work together to rescue the country in the present economic and political situation in Sri Lanka.
When Sri Lankan Prime Minister Ranil Wickremesinghe announced last week that his administration could not dip into China’s $1.5 billion credit line and has not heard back from Beijing on the $1 billion loans, the meeting took on added importance.
Last week, Chinese Foreign Ministry spokesperson Zhao Lijian stated that China had allocated $73 million in humanitarian relief to Sri Lanka.
U.S. Agency for International Development (USAID) Administrator Samantha Power spoke with Sri Lankan Prime Minister Mahinda Wickremesinghe last month to discuss the country’s political and economic issues and how USAID is responding.
Meanwhile, the Indian High Commission announced last week that India has offered Sri Lanka a $55 million Line of Credit for the purchase of fertilisers in an effort to assist the island country tide over its food shortage.
Prime Minister Wickremesinghe reportedly estimated that Sri Lanka needs $5 billion to keep people’s lives running smoothly over the next six months.
To avoid going into default on its foreign debt, the virtually insolvent government announced in April that it would postpone payments on about $7 billion in outstanding debt for this year, a portion of the approximately $25 billion owed until 2026.
$51 billion is Sri Lanka’s international debt.
