China says India made ‘great efforts’ to assist Sri Lanka; South Asia stays its precedence

China on Wednesday praised India for making “great efforts” to assist Colombo to tide over its worst monetary disaster even because it refuted Sri Lankan President Gotabaya Rajapaksa’s remarks that Beijing has shifted its strategic focus from South Asia together with Pakistan to South East Asia, saying the area nonetheless remained its precedence.

Sri Lanka has been grappling with unprecedented financial turmoil since its independence from Britain in 1948. Sri Lanka’s financial disaster has created political unrest with protesters demanding President Rajapaksa’s resignation.

“We have also noted the Indian government has made great efforts in this aspect. We recognise that,” Chinese Foreign Ministry spokesman Zhao Lijian informed a media briefing right here whereas replying to questions on whether or not China, which has made massive investments in Sri Lanka, is hesitating to assist it when the island nation is dealing with the worst financial disaster.

“We also are willing to work with India and other members of the international community to help Sri Lanka and other countries with difficulties to help these developing countries to get through this situation,” he mentioned.

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India has rushed about USD 3 billion in help within the type of line credit score and different modes to assist Sri Lanka which has just about declared insolvency and defaulted on all overseas loans together with that of China totalling to USD 51 billion.

China has introduced help of 500 million RMB (about USD 73 million) for the availability of important items however remained silent about President Rajapaksa’s request to defer the mortgage compensation and in addition to its earlier announcement to think about a USD 2.5 billion mortgage facility for Colombo.

Beijing gave the impression to be peeved over the remarks by Rajapaksa that China seems to be shifting its strategic focus in direction of South-East Asia and Africa noting that South Asian nations in monetary bother aren’t getting the identical consideration from Beijing as earlier than.

In an interview to Bloomberg on Monday, Rajapaksa mentioned that Sri Lanka couldn’t faucet a USD 1.5 billion (credit score line from Beijing) and has but to listen to again on his request to President Xi Jinping for a USD one billion mortgage to purchase important items.

Rajapaksa mentioned China indicated that it could assist Sri Lanka, whereas including that “usually they don’t like” lending out extra money to cowl earlier debt funds.

“My analysis is that China has shifted their strategic focus into South-east Asia,” Rajapaksa mentioned. “They see more strategic interest in the Philippines, Vietnam and Cambodia, that region, and Africa.” “They have less interest in this region,” Rajapaksa mentioned. “I don’t know whether I am right or wrong, even the focus on Pakistan has gone down. That shows that their interest here is not like earlier. Their interest has shifted to two other areas,” the Sri Lankan president mentioned.

Sri Lanka and Pakistan are the most important recipients of China’s largest investments and loans within the area. While Colombo acquired about USD eight to 10 billion investments and loans from China, Beijing is at the moment dedicated to construct USD 60 billion China Pakistan Economic Corridor (CPEC) over which India has protested as it’s being laid by means of the Pakistan-occupied Kashmir (PoK).

Significantly, each the nations are looking for IMF bailout packages to tide over the worst financial disaster.

Reacting to Rajapaksa’s remarks, Zhao mentioned, “as a traditional, friendly neighbour, China is always closely following the situation in Sri Lanka and we feel deeply for the current difficulties and challenges faced by the country and we have been doing our utmost to provide assistance for the socio-economic development of that country.” While highlighting RMB 500 million help for medicines, Zhao sought to downplay Rajapaksa’s observations that China has shifted its focus from South Asia, the place it competed fiercely with India to increase its affect.

“Priority for China’s diplomacy lies in China’s neighbouring countries, including South Asian countries. China attaches high importance to developing good neighbourliness relations with these countries,” Zhao mentioned.

“We have been dedicated to developing such friendship wholeheartedly,” he mentioned, citing Beijing’s help in pure disasters, international monetary disaster and COVID.

“China has always been standing with countries in South Asia and sticking together to rise above the difficulties. Under the current circumstances, China will continue to work with all relevant parties to build BRI and uphold the good momentum and see greater benefits to people in this region,” he mentioned.

He mentioned China has famous with concern that South Asian nations are dealing with monetary, fiscal difficulties and in addition difficulties of their stability sheet.

“This is related to challenges posed by COVID-19. These difficulties also have something to do with the conflict between Russia and Ukraine, as well as the following unilateral sanctions imposed on Russia by the US and western countries,” he mentioned.

“The relevant sanctions have further exacerbated the food crisis, facing developing countries, as well as their financial difficulties making things worse for their people,” he mentioned.