• China committed US $ 76 million in aid

By Kelum Bandara   

Despite initial refusal, Sri Lanka has now sought a shipment of diesel and fertilizer from China under RMB 500 million (US $ 76 million) humanitarian assistance committed by it, a top source said yesterday. 

Earlier, Sri Lanka did not respond to the offer of diesel as part of this assistance. However, after intervention by the office of Prime Minister Ranil Wickremesinghe, the government has now made the request to the Chinese Embassy in Colombo to be communicated to Beijing. Besides, some stocks of rice are also expected to arrive.   

A top source told Daily Mirror some consignments of medicines are also to arrive this month. According to diplomatic sources, China has granted US $ 1 billion loan to Sri Lanka, RMB 2 billion (US $ 300 million) financial facility through the  China Development Bank and RMB 10 billion (US $ 1.5 billion) currency swap facility through People’s Bank. 

 
Sri Lanka is currently going through a crisis with shortages of fuel, cooking gas and food. The fuel requirement is currently fulfilled through a line of credit offered by India. The prime minister has now proposed to create a consortium of countries for Sri Lanka to get help.   The government is also in the process of negotiating a programme with the International Monetary Fund (IMF). Until it is worked out, Sri Lanka has reached out to friendly countries for assistance in bridge financing.