China has agreed to support Sri Lanka’s debt restructuring plan, State Minister of Finance Shehan Semasinghe stated.
Accordingly, Semasinghe stated that the Export-Import Bank of China (EXIM) has agreed, in writing, to support Sri Lanka’s debt restructuring programme.
Stating that the debt restructuring plan has been successful thus far, Semasinghe noted that the government of Sri Lanka aims to obtain board-approval for the Extended Fund Facility )EFF) due to be received by the International Monetary Fund (IMF) within the first quarter of this year.
Semasinghe’s announcement comes in the backdrop of India, too, confirming their support towards the island’s debt restructuring plan.
On 16 January, India told the IMF that it strongly supports Sri Lanka’s debt restructuring plan as the island nation seeks a $2.9 billion loan from the global lender.
“We hereby confirm our strong support for Sri Lanka’s prospective (loan) program and commit to supporting Sri Lanka with financing/debt relief consistent with restoring Sri Lanka’s public debt sustainability,” Indian finance ministry official Rajat Kumar Mishra told the IMF chief.
Sri Lanka is currently seeking a bailout of USD 2.9 billion from the IMF, amidst one its worst economic crises.
