Tue Sep 24 00:11:32 UTC 2024: ## China Pledges Deeper Ties with Sri Lanka Under Belt and Road Initiative

**Colombo, Sri Lanka -** Chinese President Xi Jinping has expressed his desire to strengthen cooperation with Sri Lanka under the Belt and Road Initiative (BRI), congratulating the newly elected President Anura Kumara Dissanayake.

In a message to Dissanayake, who took his oath of office on Monday, Xi emphasized the importance of China-Sri Lanka relations and pledged to continue their “traditional friendship” and enhance “mutual political trust.” He specifically highlighted the potential for increased cooperation under the BRI, a flagship initiative aimed at expanding China’s global influence through infrastructure projects.

Dissanayake’s presidency comes as Sri Lanka is recovering from a severe economic crisis, partly blamed on high-debt Chinese projects undertaken under the BRI. The country’s default on foreign borrowings in 2022, which led to shortages of essential goods, prompted a $2.9 billion bailout from the International Monetary Fund.

While some critics have accused China of using the BRI to trap developing nations in debt, the Chinese government and several international think tanks have refuted the “debt trap” theory.

In 2017, Sri Lanka leased its Hambantota port to a Chinese company for 99 years after failing to repay a large loan. China is the country’s largest bilateral creditor, with loans totaling $4.66 billion.

This month, Sri Lanka finalized a debt restructuring agreement with international bondholders. China has also agreed to restructure its loans to Sri Lanka, offering a potential path toward economic recovery.

Xi’s message underscores China’s commitment to expanding its influence in the region, while also highlighting the complex dynamics of the BRI and its potential impact on developing nations.

Read More