President hails Japan’s vital role in Sri Lanka’s debt restructuring efforts

President Ranil Wickremesinghe has expressed his gratitude for Japan’s leadership role in Sri Lanka’s external debt restructuring effort.
During an interview with Japan’s NHK, Wickremesinghe voiced his confidence in Japan’s role as a co-chair of the international framework, established in April, which aims to address Sri Lanka’s debt crisis. 
He praised Japan’s significant efforts in this regard and highlighted the close collaboration between the two nations in debt restructuring.
Sri Lanka defaulted in April 2022, due to fiscal policy decisions that led to a rapid depreciation of its currency and high inflation. 
Wickremesinghe assumed office in July of the same year, amid political turmoil. Japan views Sri Lanka as a crucial partner in its pursuit of a free and open Indo-Pacific.

Conversely, China also considers Sri Lanka a partner in its Belt and Road Initiative and has been providing loans to the South Asian nation. 
Notably, in 2017, the control of the Hambantota Port was transferred to a Chinese company on a 99-year lease, after the debt went unpaid, widely regarded as an instance of “debt trap diplomacy”. Wickremesinghe lamented that China lacks institutions like the Japan International Cooperation Agency (JICA) to handle debt-related issues. 

He stressed that the Sri Lankan government maintains the security oversight of the Hambantota Port and pointed out that Japan’s Maritime Self-Defence Force vessels have made port calls there.