Chinese government has decided to provide emergency humanitarian assistance to Sri Lanka to help the country cope with the current difficulties.
The spokesperson for China International Development Cooperation Agency, Xu Wei, said China had noticed Sri Lanka’s economic difficulties and was ready to help.
Wei said, “We believe that the Sri Lankan government and people will overcome the temporary difficulties and maintain economic and social stability and development.”
Sri Lanka had been in the midst of a severe economic crisis featuring shortages of foreign exchange, fuel, and other essential supplies as well as rising inflation.
Sri Lanka’s sovereign dollar-denominated bonds came under pressure again on Tuesday, with longer-dated issues falling as much as 1.4 cents in the dollar to trade at deeply distressed levels of just over 40 cents, Tradeweb data showed.
The country’s devastating financial crisis came as the effects of COVID-19 exacerbated mismanaged government finances and as rising prices of fuel sapped foreign reserves.
Fuel, power, food, and medicines had been running low for weeks.