Economy
China Vows Continued Support for Sri Lanka Amid Debt Crisis
China has affirmed its commitment to supporting Sri Lanka as the crisis-hit island nation’s prime minister concluded a visit to Beijing aimed at finalizing a debt restructuring agreement.
Prime Minister Dinesh Gunawardena arrived in China on Monday, where he met with President Xi Jinping and attended the Boao Forum, a prominent international gathering.
During Gunawardena’s visit, discussions centered on Sri Lanka’s ongoing economic challenges, with China holding approximately 10 percent of the country’s total foreign debt.
According to a joint bilateral statement released on Friday, China expressed its willingness to continue supporting its financial institutions in actively negotiating with Sri Lanka. Beijing also pledged to maintain friendly communication with other creditors and play a constructive role in assisting Sri Lanka with financial relief.
Both parties agreed to exert maximum efforts to advance the Port City Colombo and Hambantota Development Project, aiming to transform them into flagship initiatives of the Sino-Sri Lankan joint construction under the Belt and Road initiative.
Hambantota port, once considered a white-elephant project initiated by former president Mahinda Rajapaksa, has been subject to scrutiny for its heavy borrowing from China. Sri Lanka, unable to repay a substantial loan acquired from China in 2017 for the port’s construction, handed it over to the state-owned China Merchants Group on a 99-year lease for $1.12 billion.
Sri Lanka faced a significant economic downturn, defaulting on its $46 billion external debt in April 2022 due to a shortage of foreign exchange to finance essential imports such as food, fuel, and medicine. In response, the country secured a $2.9 billion bailout from the International Monetary Fund (IMF) last year, contingent upon reaching a debt agreement that satisfies foreign creditors.
While China had tentatively agreed to restructure Sri Lanka’s debt in December, the details of the arrangement have yet to be finalized by both parties. Sri Lanka’s government had initially aimed to conclude the foreign debt restructuring by early April.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
