October 19, 2023
1 min read

Wickremesinghe Seeks Debt Relief to Help Green Transition

Sri Lanka’s total external debt exceeds USD 50 billion, with a significant portion, roughly ten per cent, owed to China….reports Asian Lite News

Debt relief for low income countries should be a part of the green transition, said Sri Lankan President Ranil Wickremesinghe during a panel on greening the Belt and Road Initiative in Beijing on Wednesday.

Development banks such as the Asian Infrastructure Investment Bank should also make more funding available, he added.

Sri Lanka’s total external debt exceeds USD 50 billion, with a significant portion, roughly ten per cent, owed to China. This debt encompasses official loans and less visible commercial borrowings from Chinese commercial banks.

Notably, Sri Lanka owes USD 119 million to the China Development Bank Corporation, USD 232 million to the China Development Bank, and USD 232 million to the Export-Import Bank of China, according to Daily Mirror, a daily English-language newspaper published in Sri Lanka.

Despite China’s promises to assist in debt restructuring, tangible actions have been limited. Sri Lanka urgently requires a USD 3 billion bailout package from the International Monetary Fund (IMF), with the first instalment already received. The release of the crucial second tranche hinges on China and other bilateral lenders restructuring their debt terms with Sri Lanka.

According to Daily Mirror, China initially participated in discussions with other creditors, including India and Japan, offering a two-year moratorium on debt repayments and even exploring the possibility of providing new loans. However, China later altered its stance, creating roadblocks in Sri Lanka’s efforts to secure IMF aid.

Other leaders from Africa, Southeast Asia, Central Asia and the Mideast will attend the Belt and Road Forum in Beijing. Russian President Vladimir Putin is also expected to attend.

ALSO READ: Wickremesinghe Due in China for BRI Meet

Previous Story

Recipe: Black Chana Salad

Next Story

A Tribute to West Bengal’s Culture

Latest from -Top News

Stalin begins UK, Germany trip to woo investors

Tamil Nadu Chief Minister M.K. Stalin begins week-long tour of Germany and the UK to attract investments, strengthen diaspora ties, and push the state’s trillion-dollar vision. Tamil Nadu Chief Minister M.K. Stalin

Court smacks down Trump’s trade tariffs

A U.S. appeals court strikes down Trump’s reciprocal tariffs, ruling he exceeded his powers, but the President vows to fight on at the Supreme Court. A U.S. federal appeals court has struck

India, Africa eye doubling of trade by 2030

India and Africa pledge to double trade by 2030, focusing on cars, energy, digital finance, healthcare and value-added growth to empower youth and economies. India and Africa are set to deepen economic

Tariff tantrums push India eastward

Modi’s trip is less about China or Russia and more about sending a message to Washington. India is not a pawn. It is a player. And Trump may have just pushed it
Go toTop

Don't Miss

Sri Lankan PM Wickremesinghe resigns

Speaker Mahinda Yapa Abeywardena will take over as President until

Sri Lanka working with India on energy projects

President Ranil Wickremesinghe said Sri Lanka is working with India