Sri Lankan Foreign Minister meets China’s Wang Yi
ECONOMYNEXT – Sri Lankan Foreign Minister Ali Sabry met Chinese Foreign Minister Wang Yi in New York on the sidelines of sessions of the United Nations General Assembly.
“Had a productive discussion with Foreign Minister Wang Yi of #China,” Minister Sabry said in a post on twitter.com.
“We discussed bilateral relations and cooperation between multilateral agencies. Minister Yi assured that China will provide unwavering support for Sri Lanka’s economic recovery.
Had a fruitful discussion with Foreign Minister Wang Yi of #China. We discussed bilateral relations and cooperation between multilateral agencies. Minister Yi assures China will offer unwavering support for Sri Lanka’s economic recovery pic.twitter.com/kYO0Swx8KB
— MOM Ali Sabry (@alisabrypc) September 24, 2022
Sri Lanka is now in the throes of the worst currency crises triggered by its mid-term central bank trying to suppress interest rates with liquidity injections to stimulate growth (targeting an output gap).
Sri Lanka has defaulted on its debt and needs to reach an agreement with official creditors to gain final approval for a 2.9 program from the International Monetary Fund and make the debt “sustainable”.
A debt sustainability approval will also unlock loans from other creditors. Sri Lanka is now on the verge of achieving monetary stability after killing domestic private credit and is on the verge of reducing credit to the government through tax hikes and increased controlled prices of state enterprises. (Colombo/September 25, 2022)