India's foreign minister becomes the first such dignitary to visit Sri Lanka since the election
COLOMBO, Sri Lanka (AP) — India’s Foreign Minister S. Jaishankar met Sri Lanka’s newly elected President Anura Kumara Dissanayake Friday in the first such visit of a dignitary since a new government took office in the island nation last month, amid questions over how Dissanayake would balance between regional powers China and India. The two men discussed ways to deepen bilateral ties.
Sri Lanka is located on one of the world’s busiest shipping routes in what India considers part of its strategic backyard. China too has exerted influence in the country in recent years by including it in its Belt and Road project.
“Appreciate his warm sentiments and guidance for the India-Sri Lanka relations. Discussed ways to deepen ongoing cooperation and strengthen India-Sri Lanka ties for the benefit of people of two countries and the region,” Jaishankar said in a post on the social media site X.
The support of the two regional rivals is crucial for Sri Lanka to emerge from its worst economic crisis in decades, which led to a political calamity and finally paved the way for Dissanayake’s party to come to power.
Beijing was once widely seen as having an upper hand with its free-flowing loans and infrastructure investments. But Colombo's economic collapse in 2022 provided an opportunity for India, as New Delhi stepped in with massive financial and material assistance including food, fuel and medicines.
At the same time, China’s support to restructure its infrastructure loans to Sri Lanka is vital for Sri Lanka to emerge from its dire economic crisis.
On Friday, India's top diplomat also met his counterpart Vijitha Herath and “assured him of India’s continued support to Sri Lanka’s economic rebuilding,” in a separate post on his account on X.
Sri Lanka’s foreign ministry said the main objective of Jaishankar’s visit was to congratulate the new president and the government and also “to demonstrate India’s commitment in moving forward with the strong bilateral partnership.”
Jaishankar has extended an invitation to Dissanayake to visit India at a mutually convenient date, the ministry said in a statement.
Traditionally, Sri Lankan leaders undertake their maiden official trip to India.
China has lent Sri Lanka billions of dollars for development projects, some of which have been criticized as having little practical use. They include the Hambantota port, built with Chinese money in former President Mahinda Rajapaksa's home region, despite the plan having been rejected by an expert panel.
When the port failed to generate enough revenue to pay back the loan, Sri Lanka in 2017 was forced to hand the facility and thousands of acres of surrounding land to Beijing for 99 years — giving China a key foothold in the country directly opposite India’s coastline.
Both India and China have separately agreed on terms with Sri Lanka for restructuring its debt, which would enable the country to come out from bankruptcy and rebuild the tattered economy.
Sri Lanka plunged into an economic crisis in 2022, suffering severe shortages and drawing strident protests that led to the ouster of then-President Gotabaya Rajapaksa.
It declared bankruptcy in April 2022 with more than $83 billion in debt — more than half of it to foreign creditors.
China accounts for about 10% of Sri Lanka’s loans, trailing Japan and the Asian Development Bank.
Sri Lanka last year agreed to a $2.9-billion bailout package from the International Monetary Fund. Over the past year, Sri Lanka’s severe shortages of essentials like food, fuel and medicine have largely abated, and authorities have restored power supplies.
But public dissatisfaction has grown over the government’s efforts to increase revenues by raising electricity bills and imposing heavy new income taxes on professionals and businesses.
Dissanayake won last month’s election over his predecessor Ranil Wickremesinghe and opposition leader Sajith Premadasa as Sri Lankans rejected the old political guard whom they blamed for pushing the country into an unprecedented economic crisis.
During the campaign, Dissanayake said that he would renegotiate the bailout agreement with the IMF agreed by Wickremesinghe. He said he wants to make austerity measures more bearable for the poor.
Wickremesinghe, however, had warned that any move to alter the basics of the agreement could delay a fourth tranche of nearly $3 billion from the IMF, which is crucial for economic stability. Days before the election Wickremesinghe’s administration also agreed in principle to restructure Sri Lanka’s foreign debt.
Separately on Friday, Dissanayake met the visiting IMF officials.
According to a statement from the president’s office, Dissanayake told the IMF officials that he would agree with the objectives of the IMF program, but at the same time, his government expects to provide relief to the masses. No further details on the meeting were immediately available.
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