External Affairs Minister S Jaishankar. , Photo Credit: ANI
Government sources said External Affairs Minister S. Jaishankar’s visit to Colombo on Thursday will focus on “supporting Sri Lanka” in the current economic crisis, he said, talking about energy security, food security, currency swap arrangement as well as restructuring of Sri Lanka’s debt. Some announcements are expected during the two-day visit.
“Considering India’s support last year as well, India is expected to respond positively to Sri Lanka’s requirements,” said a source, citing India’s joint package of around $4 billion. Moratorium through Asian Clearing Union.
In addition, talks are expected on two possible MoUs – the Trincomalee Development Project and the long-pending plan for a cross-strait transmission line that will allow Sri Lanka to access India’s plans for an energy grid with other countries such as Nepal, Bhutan. will allow. and Bangladesh.
Insisting that helping Sri Lanka through its current economic difficulties is a priority, the sources said Mr Jaishankar’s visit, his first with the six-month-old government in Colombo, would take a comprehensive review of bilateral ties.
Meanwhile, diplomatic sources said support in the form of “written financial assurance” from India would be crucial for Sri Lanka as it works with its other creditors to resolve the economic crisis.
Announcing EAM Jaishankar’s visit, Sri Lankan President Ranil Wickremesinghe said that he had discussed the need for a debt restructuring program with all of Sri Lanka’s creditors, including the ‘Paris Club’ of 22 developed countries, which hold the majority of global debt. And discuss together the solution to the debt crisis.
“Japan and the Paris Club, our two major creditors, have expressed willingness to assist. We have already started talks with India and China. As per the recent discussions with China Exim Bank, we are currently are debating how to restructure their debt. The Chinese side has agreed to move swiftly,” Mr Wickremesinghe told a group of businessmen last week
He said Sri Lanka’s “only” option was to seek International Monetary Fund (IMF) support for a bailout of around $3 billion, and also expected a package from the Asian Development Bank (ADB).
“We had discussions with the Exim Bank of China this week and so far we have started exchanging views on this. India’s External Affairs Minister is scheduled to visit Sri Lanka on the 19th to discuss the debt restructuring process. We are gradually moving forward with these activities,” the Sri Lankan president told a separate group of trade union representatives, amid an ongoing visit by Satoshi Fujimaru, Japanese Minister of State for the Cabinet Office, and Chen Zhou, Vice Minister of the Department of International Affairs. Indicated. , Communist Party of China Central Committee.
Following Mr. Chen’s meeting with President Wickremesinghe, the Chinese embassy in Sri Lanka said that the talks were “friendly and fruitful”, and quoted Mr. Wickremesinghe as saying that he was “at this time ready for China’s support in restructuring Sri Lanka’s debt”. Look forward to and economy in our near future”.
Sri Lanka was expected to finalize its IMF bailout package but missed the December deadline due to delays in concluding debt restructuring talks. It is now expected to complete the talks in the first quarter of 2023.