Sri Lanka\u2019s prime minister said on Wednesday that China has pledged to develop the island nation\u2019s strategic deep sea port and the capital\u2019s airport after talks with his counterpart in Beijing. Prime Minister Dinesh Gunawardena said China \u2014 the island\u2019s biggest bilateral creditor \u2014 would \u201cassist\u201d Sri Lanka\u2019s restructuring of external debt, a key condition to maintaining a $2.9 billion IMF bailout. Beijing\u2019s position on debt restructuring has not been made public, but Sri Lankan officials have said China was reluctant to take a haircut on its loans but could extend the tenure and adjust interest rates. Sri Lanka in 2022 ran out of foreign exchange to finance essential imports and declared a sovereign default on its $46 billion foreign debt. Months of protests forced then-president Gotabaya Rajapaksa out of office. Gunawardena\u2019s office said Premier Li Qiang had promised China would \u201cassist Sri Lanka\u2019s debt restructuring process continuously and help Sri Lanka to develop its economy\u201d. Gunawardena said Beijing had offered \u201cassistance to develop\u201d Colombo International Airport and Hambantota port, the statement added, without giving further details. A Japanese-funded expansion of Colombo airport had been on hold since Sri Lanka\u2019s sovereign debt default. The southern sea port of Hambantota was handed to a Chinese state-owned company in 2017 on a 99-year lease for $1.12 billion, sparking security concerns in Beijing\u2019s regional rival India. India and the United States are both concerned that a Chinese foothold at Hambantota, on the island\u2019s southern coast, could boost its naval advantage in the Indian Ocean. Sri Lanka has insisted its ports will not be used for any military purposes, but New Delhi has objected to Chinese research vessels calling at Hambantota fearing that they could be used for espionage.<\/p>\n","protected":false},"excerpt":{"rendered":"
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