Chinese Foreign Minister Wang Yi will visit Sri Lanka next week in the midst of a crippling economic crisis. Have seen Colombo switch to Delhi for the relief and fast pedal plan of India-Sri Lanka which was delayed for a long time for the development of Trincomalee oil agriculture.
The two-day visit of Wang Yi, which is expected between January 7 and 9, will take place against the background of the Spat between the two countries during the consignment of contaminated organic fertilizers that have produced unexpected tensions between the two countries.
After Colombo canceled the order for the import of 99,000 tons of fertilizer, Beijing watched the People’s People’s Bank Sri Lanka and accused the default “ferocious” in the Letter of Credit payment.
Earlier this month, with Chinese companies launched the arbitration process for compensation of $ 8 million, Sri Lanka draw a line under controversy by approving payment of $ 6.4 million.
The visit of Wang Yi would be significant for the sweeteners he offered to the government of Rajapaksa to take good intentions.
Meanwhile, Colombo moved forward in completing plans to develop together with Indian massive oil tank agriculture in Trincomalee. Although no country says in many words, Delhi can offer financial assistance to help Sri Lanka Tide for the current crisis.
“We have said that these two things must develop in parallel, and progress in a person must strengthen other progress towards strengthening economic bonds,” said an official source, adding that the coming months might see important developments in Trincalee Oil Tank Farm Treal.
Sri Lanka’s foreign exchange reserves sank up to $ 1.6 billion at the end of November. The shortcomings have caused a decrease in food imports, encouraging essence prices in this country. The IMF bailout is the last option that Sri Lanka does not want to take.
Earlier this month, Fitch International Rating Agency lowered the Sri Lankan rating from CC to CCC, a warning that the country tended to default on two international sovereignty bonds, one coming in January 2022 for $ 500 million, and others matured at $ 1 billion.
Sri Lanka’s central bank called Fitch’s actions “hastily” and said it did not take into account Diplomatic Colombo outreach to friendly countries for financial assistance assistance. Statement from the Bank said the cash flow was estimated at the end of December 2021 and March 2022.
“The government and the central banks are still convinced that this inflow will be realized and the level of gross official reserves of the end of 2021 will remain above USD 3 billion. Fitch seems to have ignored standby swap facilities with the Bank of China around USD 1.5 billion,” said broadcast media.
Regardless of the loan and the term financing agreement of foreign currency with China during this year, Sri Lanka signed a three-year “Siaga” swap agreement with Beijing in March 2021. The central bank’s governor said earlier this month to pay this to pay for imports from China.