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China Commits to Deepening Mutual Trust with Sri Lanka

China plans to boost "mutual trust" with Sri Lanka as the island nation faces its worst economic crisis in decades.

China is set to strengthen “mutual trust” with Sri Lanka as the island nation grapples with its most severe economic crisis, marked by a debt default of $46 billion and prolonged food and fuel shortages. 

China, Sri Lanka’s largest creditor, is pivotal in any debt restructuring proposals.

Green Light for Financial Reorganization:

Sri Lanka recently announced that the state-owned Export-Import Bank of China had approved the reorganization of the country’s finances. 

Following discussions between the two nations, this step was taken to address Sri Lanka’s economic challenges.

High-Level Talks and Belt and Road Forum:

Chinese President Xi Jinping held discussions with his Sri Lankan counterpart, Ranil Wickremesinghe, during a meeting in Beijing. 

This event followed China’s hosting of 130 government representatives as part of the Belt and Road initiative, emphasizing China’s role as a key partner in Sri Lanka’s economic recovery.

Solidarity and Cooperation:

President Xi expressed his commitment to consolidating political mutual trust and enhancing the China-Sri Lanka strategic cooperative partnership. 

He emphasized cooperation based on sincere mutual assistance and everlasting friendship to achieve continued progress.

IMF’s Support for Sri Lanka:

The International Monetary Fund (IMF) announced its agreement with Sri Lanka to disburse the second tranche of a $3 billion loan designed to aid the country’s economic recovery. 

The IMF’s support represents a significant step in Sri Lanka’s efforts to overcome its financial difficulties.

Get all the latest update on UAE Times Now

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