ECONOMYNEXT – Sri Lanka has been assured continuous support in debt restructuring by China, a statement from Prime Minister Dinesh Gunawardena’s media office said as the island seeks to wrap up its default workout by the middle of the year.
“Chinese Prime Minister Li Qiang assured Prime Minister Dinesh Gunawardena that China would assist Sri Lanka’s debt restructuring process continuously and help Sri Lanka to develop its economy,” the statement said Wednesday, after a bilateral meeting between the two in Beijing.
Sri Lanka has already reached an in-principle deal on the bilateral debt from Export-Import Bank of China.
Sri Lanka also has term loans from China Development Bank which have been classified as commercial.
“We look to see swift progress with the outstanding items that I discussed, in particular, reaching agreement with the commercial creditors, the international bondholders, and also China Development Bank, so as to cementing the path to debt sustainability,” IMF’s Senior Mission Chief Peter Breuer said in a statement.
Sri Lanka is also starting negotiations with sovereign bond holders this week and hopes to wrap up restructuring, by June-July before elections, President Ranil Wickremesinghe said. (Colombo/Mar27/2024)