China has extended financial aid and loans to help Sri Lanka address its economic challenges, especially during times of crisis, said the chief guest, Secretary to the Treasury and the Ministry of Finance, Economic Development, Policy Formulation, Planning and Tourism, Mahinda Siriwardana.
Overall, China’s ongoing support plays a vital role in Sri Lanka’s aspirations for economic growth and modernisation, he said.
Siriwardana was speaking at the China Aid Training Alumni Reception 2024. China has also played a pivotal role in supporting Sri Lanka’s debt restructuring efforts in response to the unprecedented, deep and most complex economic crisis experienced since mid-2021. About a year ago, in October 2023, China was the first among the official sector creditors to announce an Agreement in Principle (AIP) on the key financial terms for the money owed by Sri Lanka to Exim Bank of China, he said.
“We all know how complex and technically challenging this debt restructuring process has been, in terms of ensuring compatibility with the IMF’s Debt Sustainability Analysis (DSA) and ensuring Comparability of Treatment with other creditors. This was possible with Chinese lenders, given the mutual trust and good faith demonstrated by both sides. Sri Lanka hopes that the debt restructuring chapter will soon be closed and we resume a robust financial relationship, including fresh financing for high quality, priority projects,” Siriwardena said
He said China’s support for Sri Lanka has been instrumental in the country’s development, particularly in the realm of infrastructure and economic assistance. Over the years, China has invested billions of dollars in various projects, including ports. These investments aim to enhance Sri Lanka’s logistical abilities.
“It is the Chinese Government that offers the maximum number of training opportunities to Sri Lanka. We have noted that, since its initiation, China has provided over 8,000 training opportunities in various fields such as health, education, industry, and construction for public sector officials in Sri Lanka. It is noteworthy that Sri Lanka now receives nearly 1,000 training programs each year from the Chinese Government, he said.
Chinese Ambassador Qi Zhenhong said in the new year, the Chinese Government will fully consider the development needs of the new Government, improve the pertinence and effectiveness of training programs, and welcome more participants to visit and study in China.
He said the Chinese Government attaches great importance to all-round educational cooperation with Sri Lanka. Over the years, it has held various training programs in China, inviting nearly 13,000 Sri Lankans in various fields to participate in seminars in China. By the end of October this year, over 1,000 Sri Lankans went to China for training and the training topics covered 17 major areas including public management, scientific research, information technology, economy and trade, education, health, agriculture, forestry, animal husbandry and fishery, resources and environment and disaster management.
“Through mutual learning and exchanges, we have grown together and deepened the traditional friendship between our two countries,” the Ambassador said.
China’s training adheres to the concept of sharing, consultation and co-construction, builds a platform for countries to exchange experience in governance, and fully shares the successful experience of Chinese modernisation. Since China launched training programs in 1950, it has trained over 510,000 people from developing countries, he added.
