February 2, 2023
2 mins read

‘What China offered is not enough’: US on Lanka’s debt crisis

The US Under-Secretary made this remark while on an official visit to Sri Lanka to mark the 75th anniversary of US-Sri Lanka relations….reports Susitha Fernando

Commenting on Sri Lanka’s debt restructuring process, visiting US Under-Secretary for Political Affairs, Victoria Nuland, complained on Wednesday that while India has made strong commitments for the cash-strapped island nation to unlock the International Monetary Fund’s (IMF) $2.9 bailout package, what China has offered so far is not enough.

The US Under-Secretary made this remark while on an official visit to Sri Lanka to mark the 75th anniversary of US-Sri Lanka relations.

“India has made strong commitments that it will provide credible assurances that the IMF is looking for. What China has offered so far is not enough. We need to see credible and specific assurances that they will meet the IMF standards of debt relief,” Nuland said, while responding to a question raised by journalists that India has given an assurance to the IMF on Sri Lanka’s debt restructuring but China has failed to do so.

“We all as major creditors of Sri Lanka had been working with the IMF. As the largest bilateral creditor of Sri Lanka, we are sad that China will provide credible and specific assurance regarding its readiness to join the rest of us in meeting IMF standards regarding debt restructuring. So we are increasingly seeing that all the rest of the Sri Lanka’s creditors coming forward with their assurances. Now all eyes are on China to do the same,” Nuland stressed.

“We want to see the IMF agreement as quickly as possible. That’s what Sri Lanka deserves, that’s what Sri Lanka needs with the United States prepared to do its part while our Paris Club partners are also prepared to do their part,” Nuland stated.

Facing a crucial economic crisis, Sri Lanka is awaiting the IMF’s four-year bail out of $2.9 billion but it requires assurances from the major creditors, including China, Japan and India.

On January 20, India had formally informed the IMF of its assurance for Sri Lanka to get the bailout package. However, China’s Export-Import Bank has offered only a two-year moratorium on its debt. Yet China’s assurance is not sufficient for the IMF to release the much-needed bailout package for Sri Lanka.

ALSO READ: Lanka govt seeks support for Katchatheevu church festival

Previous Story

EU’s green industry deal to take on US

Next Story

Pak inflation hits 48-yr high

Latest from -Top News

Trump tariffs send world markets into panic

US benchmark crude oil shed $2.70 to $64.25 a barrel after major oil producers announced they plan to increase production. Brent crude, the international standard, was down $2.63 at $67.51 a barrel

EU prepares retaliation for Trump’s tariffs

The European Commission is assembling a fresh round of counter-tariffs aimed at US goods, adding to two existing lists of potential targets—one of which includes products that were hit by suspended tariffs

US, EU slam China’s war games near Taiwan

US President Donald Trump underscored the need to maintain peace in the Taiwan Strait, advocating for a diplomatic approach to cross-strait tensions while warning against the use of force The United States

£13.9 billion of R&D fund to boost innovation, jobs

Funding outlined to support transformational R&D in areas like life sciences, green energy, engineering and beyond More UK innovators like those developing treatment-transforming dementia tests or building world-leading testing facilities to power

OPEC+ accelerates oil output hikes

Despite the production boost, the group emphasised that future adjustments remain flexible and could be paused or reversed depending on market conditions. Eight OPEC+ nations have unexpectedly decided to accelerate their oil
Go toTop

Don't Miss

Virgin Galactic opens spaceflight tickets to public for $450,000

Established in 2004, Virgin Galactic is looking to build on

US envoy reassures Indian students amid safety concerns

Expressing condolences to affected families, he underscored the US government’s