September 12, 2022
2 mins read

USAID urges China to assist Lanka’s debt restructuring

The USAID stated that the complex emergency that has resulted in a severe economic crisis has left nearly 5.7 million Sri Lankan people in urgent need of food, agriculture, livelihood support, protection, and more…writes Susitha Fernando

Visiting USAID Administrator Samantha Power on Sunday urged China, among other creditors, to assist Sri Lanka in restructuring debts to recover from the ongoing economic crisis.

Completing her two-day visit to the island nation that grapples with the worst-ever economic crisis since its independence from British rule in 1948, Power announced that the US was ready to help South Asian island in its debt restructuring process.

“As Sri Lanka seeks to emerge from this economic crisis, the United States, as a creditor and a member of the Paris Club, stands ready to participate in the restructuring of Sri Lanka’s debts,” Power told journalists here.

“It is imperative that all Sri Lankan creditors, most notably the People’s Republic of China, cooperate in this process openly and on comfortable terms with each other.

“When debt becomes unsustainable as it so clearly has in Sri Lanka, the stake of that cooperation can mean the difference between life and or death, prosperity or poverty,” Power added.

The United States Agency for International Development (USAID) Administrator, who emphasised that the US is not interested in increasing Sri Lanka’s debt, said that her country “provides grants, as it is interested in the US-Sri Lanka relationship becoming a strictly trade related relationship, and not an aid relationship”.

“We want to use our resources to unlock the potential that we know is there, without strings attached. And we think this is a really important moment in Sri Lanka for that same mindset of standing with our friends, no strings attached, and in the interest of economic independence and economic stability for this country,” Power added.

During her visit, Power announced that $60 million assistance would be given to Sri Lanka – $40 million to help farmers purchase fertiliser and other vital agricultural inputs and another $20 million as emergency humanitarian assistance.

The USAID stated that the complex emergency that has resulted in a severe economic crisis has left nearly 5.7 million Sri Lankan people in urgent need of food, agriculture, livelihood support, protection, and more.

The weekend’s USAID financial support has brought the US government’s assistance to Sri Lanka at nearly $240 million.

With a colossal $51 billion total debt with the challenge to repay around $28 billion by 2028, Sri Lanka suspended repayment of nearly $7 billion in foreign debts due for the year 2022.

On September 1, the International Monetary Fund (IMF) struck a deal to provide $2.9 billion over four year to help salvage the country from its worst economic crisis but reiterated that much will depend on the cooperation of the country’s existing creditors including China.

During her weekend visit, Power also met President Ranil Wickremesinghe, famers who were affected by the agricultural crisis and few other stakeholders.

ALSO READ: India issues advisory for students planning to study in China

Previous Story

Jaishankar lauds India-Saudi Arabia ties

Next Story

The crowning glory of Liz Truss is her nemesis

Latest from -Top News

UK MPs Slam Pakistan Over Minority Abuses

Minority communities such as Shias, Christians, Hindus, and Ahmadis continue to face harassment, violence, and intimidation. In many cases, law enforcement either turns a blind eye or enables the attacks through inaction…reports

Words Won’t Stop China, Quad Must Deliver

 If the Quad aims to counterbalance China’s growing influence, it must expand its focus beyond the maritime domain and address the continental dynamics of the Indo-Pacific…writes Imran Khurshid Despite early concerns that

India Stays Neutral on Dalai Lama Succession

As exiled Tibetan spiritual leader approaches his 90th birthday, he asserted on Wednesday that there will be the 15th reincarnation…reports Asian Lite News Responding to the Dalai Lama’s recent remarks, India on

USAID cut could kill 14 million more deaths

Human rights advocates and global health experts have expressed alarm at the speed and scale of the cuts…reports Asian Lite News A new study published in The Lancet has warned that ongoing

Trump goes nuclear on Mamdani

Mamdani, a 33-year-old democratic socialist and son of Indian-Ugandan immigrants, secured a surprise victory over former governor Andrew Cuomo in the Democratic primary.;…reports Asian Lite News President Donald Trump has intensified his
Go toTop

Don't Miss

First case of Indian coronavirus variant found in US

The Indian variant was found in a patient from the

US to enforce IPEF Supply Chain Agreement on Feb 24

The IPEF agreement, relating to supply chain resilience is also