March 7, 2023
2 mins read

China agrees to back Lanka’s debt restructuring

President Ranil Wickremesinghe on Tuesday informed Parliament that the government received a letter of assurance from the Chinese Exim Bank…reports Asian Lite News

Breaking the biggest barrier to receive the promised conditional International Monetary Fund (IMF) bailout package of $2.9 billion to help Sri Lanka’s cash-strapped economy, China has given assurance to help the island nations debt restructuring programme.

President Ranil Wickremesinghe on Tuesday informed Parliament that the government received a letter of assurance from the Chinese Exim Bank on Monday night and the letter of intent signed by the Central Bank Governor and himself was sent to the IMF immediately.

Wickremesinghe, who also the Finance portfolio, assured that once the IMF agreement is reached, the deal would be tabled in Parliament along with the draft of the government’s future plan and road map.

A delay by China the biggest bilateral creditor to the island nation accounting for 52 per cent, had been hampering Sri Lanka’s effort to get the much needed dollar bail out promised by the IMF in last September.

Referring to Sri Lanka’s attempt reach the IMF conditions to get the bailout, in January US Ambassador to Sri Lanka, Julie Chung urged China not to be a spoiler.

“For the sake of the Sri Lankan people, we certainly hope China is not a spoiler as they proceed to attain this IMF agreement,” she complained.

In an interview to the BBC on January the US Ambassador claimed that the greater onus to move with regard to Sri Lanka’s debt restructuring, a prerequisite for an IMF bailout, was on China, as the biggest bilateral lender.

“We hope that they do not delay because Sri Lanka does not have time to delay. They need these assurances immediately,” Ambassador Chung stated.

Accounting for 12 per cent of total debt, India, the third largest bilateral creditor to Sri Lanka after China and Japan, was the first to formally inform the IMF of its assurance for the external debt restructuring programme.

The closest neighbour to the crisis-hit country, India’s outstanding credit to Sri Lanka amounted to nearly $1.7 billion up to June last year.

Following India, in February the Paris Club of creditors announced its supports for the debt restructuring of Sri Lanka.

ALSO READ: China focus of Australian, Japanese PMs visits

Previous Story

New ministers swear-in before Prez, VP

Next Story

Russian reservists fighting with shovels, says UK intelligence

Latest from -Top News

India opens world’s highest rail bridge

Prime Minister Narendra Modi inaugurated the world’s highest railway bridge over the Chenab River in Jammu and Kashmir and flagged off the much-awaited Vande Bharat Express to Srinagar, marking a historic moment

Sisi, MBZ cement ties

UAE and Egypt bolster ties through high-level talks in Abu Dhabi and a landmark cardiac care initiative delivering lifesaving treatment to rural communities The United Arab Emirates and Egypt reaffirmed their strong

‘UAE leads global fight against plastic waste’

UAE accelerates its fight against plastic pollution with a bold single-use plastic ban and expanded environmental policies to safeguard natural ecosystems for future generations The United Arab Emirates continues to lead the

70,000 Gaza kids starve

WFP warned that any further escalation of conflict could paralyse relief operations altogether, deepening the plight of civilians—especially children, the elderly, and vulnerable groups As the humanitarian crisis in Gaza intensifies, the

Prayers on the Mount

The Day of Arafat, considered the pinnacle of the Hajj pilgrimage, witnessed a congregation of believers from around the world As the sun blazed overhead and temperatures climbed to a sweltering 41°C,
Go toTop

Don't Miss

Putin hails country’s broad ties with China

The New York Times (NYT) recently reported that public opinion

India, China to join Russian war games

China’s Defence Ministry in Beijing in a statement announced the