COLOMBO: Sri Lanka’s president will travel to the island’s largest bilateral lender China next week ahead of his first national budget, the information minister said Tuesday.
The visit comes a month ahead of President Anura Kumara Dissanayake’s first budget, which is expected to outline his plans to sustain the country’s painful recovery from its worst economic meltdown in 2022.
Dissanayake will begin a three-day visit on January 14, said Nalinda Jayatissa.
It will be his second foreign trip – after visiting regional powerhouse India last month – since being elected in September.
China accounted for more than half of Sri Lanka’s $14 billion debt borrowed from other governments at the time the island defaulted on its sovereign debt in 2022 when Colombo ran out of foreign exchange to pay for essential imports such as food, fuel and medicines.
Sri Lanka kicks off much-delayed $12.5bn bond deal
Leftist Dissanayake has already endorsed a $2.9 billion, four-year IMF bailout loan program negotiated by his predecessor in 2023, and plans to maintain high taxation to shore up state revenue.
After much delay, the Sri Lankan government concluded a restructuring of both bilateral loans and international sovereign bonds last month, ending its bankrupt status.
Official sources said Sri Lanka was likely to seek more financial assistance from China.
The two countries are also due to sign several agreements, including closer cooperation between state media organisations.
Dissanayake will be accompanied by Foreign Minister Vijitha Herath and Transport Minister Bimal Rathnayake.
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