China expresses hope OCC countries including India will sign debt deal with Sri Lanka soon

Chinese Ambassador Qi Zhenhong 

• Ambassador Qi points to China being first to extend support in debt relief last year
• Says being largest creditor move comes at considerable cost but gestures proves sincerity of China towards Sri Lanka; reiterates further support
• Dismisses continuous rift between China and India as portrayed by some media
• Says his dream is to one day see a China-India mutually beneficial and significant joint venture in Sri Lanka
• Says heartened by Sri Lanka’s and its people’s natural affinity towards China
• Citing China, says only through reforms and opening up can a country can be competitive and prosper

China on Friday reiterated its support to Sri Lanka and singled out it being the first country to back the external debt restructuring last year, and called upon the Official Creditor Committee (OCc) members, including India, to follow suit.

The expression of support came from Ambassador Qi Zhenhong during a media interaction on China’s recent ‘Two Sessions,’ the Government Work Report, prospects for the Chinese economy, and the country’s diplomatic stance on global and regional issues. While welcoming the signing of the agreement on external debt between Japan and Sri Lanka last week as the first among OCC countries, Qi expressed hope that other members, such as India, too would sign the agreement at the earliest.

The Ambassador said being the largest creditor to Sri Lanka, China has incurred a big loss by way of a haircut but insisted it was undertaken in the larger interest and to ensure debt sustainability. “We have no hidden agenda but have demonstrated a sincere approach to the wellbeing of Sri Lanka,” he emphasised.

Dismissing the portrayal of constant rivalry between India and China by some media, Qi said both countries share common borders and continue to engage with each other as opposed to being allegedly in conflict always, and both as emerging markets continue to focus on development.

“My dream is that one day both China and India will work together on a significant and mutually beneficial joint venture in Sri Lanka,” Ambassador Qi quipped.

He recalled President Anura Kumara Disanayake’s State visit to Beijing and the two countries signing 15 Memoranda of Understanding (MoUs) and pointed to the interaction between the two leaders as a stepping stone for the further strengthening of bilateral cooperation.

“I have been in Sri Lanka for the past four years and I am heartened by Sri Lanka’s and its people’s natural affinity towards China and the intent to further deepen ties,” the Ambassador added.

Referring to China’s ‘Two Sessions’ chaired by President Xi Jinping, the Ambassador said that China will continue to open up and push for reforms. “Only through reforms and opening up can a country be competitive and prosper as evidenced by China over the past four decades,” Ambassador Qi emphasised. In 2024, China’s GDP reached 134.9 trillion yuan (about $ 18.77 trillion), with a 5% growth rate. High-tech manufacturing saw an 8.9% increase, and new energy vehicle production exceeded 13 million units. The country also contributed about 30% to global economic growth while maintaining over $ 3.2 trillion in foreign exchange reserves.

In 2025, apart from a 5% economic growth, China aims to create over 12 million new urban jobs and keep the surveyed urban unemployment rate around 5.5%. The Government plans to maintain consumer price inflation at approximately 2% while ensuring personal income growth remains in step with economic expansion.