The economic crisis, spurred primarily by dwindling forex revenues, prompted the government to approach the International Monetary Fund (IMF) for an Extended Fund Facility (EFF). An in-person IMF delegation which visited Sri Lanka during the last week of June concluded its visit without a deal, although the Western lender stated that “significant progress” had been made in the bailout negotiations.
“China is closely following the latest developments in Sri Lanka. As a friendly neighbor and cooperation partner, we sincerely hope that all sectors in Sri Lanka could bear in mind the fundamental interests of their country and people and work together in solidarity to overcome the current difficulties and strive to restore stability, revitalize the economy and improve people’s livelihoods at an early date,” Foreign Ministry spokesperson Wang Wenbin said during a press briefing on Monday.