Strategically placed Sri Lanka's economic recovery was essential for stability in the Indo-Pacific region, Japan's foreign minister said Saturday, urging Colombo to swiftly restructure its foreign debt.
The Sri Lankan government which defaulted on its $46 billion external debt in April 2022 had hoped to finalise deals with foreign creditors by April but there have been no final agreements yet. “The restoration of stability and economic development of Sri Lanka, which is at a strategic location in the India Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region,” she added.
Then-president Gotabaya Rajapaksa, who faced allegations of mismanagement and corruption, was forced to flee the country and resign in July 2022 after months of protests. India is not xenophobic, the country's foreign minister has insisted, after comments by US President Joe Biden suggesting the South Asian nation and fellow ally Japan were struggling economically because they rejected immigrants.