Colombo - Sri Lankan President Ranil Wickremesinghe has arrived in Beijing to participate in the third Belt and Road Forum for International Cooperation, as reported by China's official state news agency Xinhua.

At the same time, Sri Lanka is facing a complex combination of economic challenges, strategic dynamics, and regional influence. The country is dealing with a significant amount of debt and is also navigating the increasing presence and influence of China in the region.

Sri Lanka's total external debt exceeds USD 50 billion, with about ten percent owed to China. This includes official loans as well as less visible commercial borrowings from Chinese commercial banks. The Daily Mirror, a Sri Lankan daily English-language newspaper, states that Sri Lanka owes USD 119 million to the China Development Bank Corporation, USD 232 million to the China Development Bank, and USD 232 million to the Export-Import Bank of China.

Despite China's promises to assist in debt restructuring, there have been limited tangible actions. Sri Lanka is in urgent need of a USD 3 billion bailout package from the International Monetary Fund (IMF), with the first installment already received. The release of the crucial second tranche depends on China and other bilateral lenders restructuring their debt terms with Sri Lanka.

According to the Daily Mirror, China initially participated in discussions with other creditors, such as India and Japan, offering a two-year moratorium on debt repayments and exploring the possibility of providing new loans. However, China later changed its stance, creating obstacles in Sri Lanka's efforts to secure IMF aid.

Leaders from various regions including Africa, Southeast Asia, Central Asia, and the Middle East are expected to attend the Belt and Road Forum in Beijing. Russian President Vladimir Putin is also anticipated to participate.