China assures continued support to ease Sri Lanka’s debt burden
October 11, 2023 05:25 pm
China has assured that it remains ready to work together with all relevant international financial institutions to jointly play a positive role in helping Sri Lanka ease its debt burden and achieve sustainable development.
Speaking during his regular press briefing on Tuesday (10), China’s Foreign Ministry Spokesman Wang Wenbin explained that as Sri Lanka’s friend and neighbor, China closely follows the difficulties and challenges faced by the island nation, adding that, “We have been doing what we can to assist in its economic and social development”.
He said China’s relevant financial institutions have been in close touch with Sri Lanka on the debt issue involving China since last year, and that they have engaged in active bilateral consultations and provided a financing support document to Sri Lanka in a timely manner to help it obtain loans from the IMF.
“Chinese financial institution has taken part in all the creditors’ meetings as an observer and maintained friendly communication with other creditors to share with them the progress of the debt treatment”, Wenbin said, when asked how China has aided Sri Lanka’s debt restructuring process.
Commenting on the progress made pertaining to bilateral debt treatment, Wenbin reminded that in late September, as the official creditor, the Export-Import Bank of China tentatively agreed with Sri Lanka on the debt treatment.
“We are also glad to see that other creditors are having discussion with Sri Lanka as well over solutions to its debt issue”, he further commented.
Accordingly, he assured that they will support Chinese financial institutions in actively consulting with Sri Lanka.
“We are ready to work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development. We call on multilateral institutions and commercial creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing”, he said in this regard.
