Lanka readies oil tank farm deal with India; Wang to visit Colombo after spat, may offer sweeteners

China’s Foreign Minister Wang Yi will visit Sri Lanka next week in the midst of a crippling economic crisis that has seen Colombo turn to Delhi for help and fast pedal the long-delayed India-Sri Lanka plan for joint development of the Trincomalee oil tank farm.

Wang Yi’s two-day visit, expected between January 7 and 9, will take place against the backdrop of a spat between the two countries over a contaminated consignment of organic fertiliser that has resulted in unexpected tensions between both countries.

After Colombo cancelled an order for the import of 99,000 tons of the fertiliser, Beijing blacklisted the Sri Lankan state-run People’s Bank and accused it of a “vicious” default on the letter of credit payment.