23 February 2023 09:36 am Views - 488
Sri Lanka’s debt restructuring process is to be discussed among finance ministers and Central Bank Governors of the Group of 20 (G 20) when they meet tomorrow in Bengaluru, India, Daily Mirror learns.
It is the major event of India’s G 20 presidency. According to informed sources from the government, Sri Lanka’s debt crisis will be discussed. Sri Lanka has sought a US $ 2.9 billion programme with the International Monetary Fund (IMF). However, the international lender is now awaiting assurance from the bilateral creditors. India and Japan have already pledged their support to Sri Lanka in restructuring its borrowings in conformity with the IMF debt sustainability criterion.
China, as the largest bilateral creditor, has offered a two-year moratorium on debt payment. However, Sri Lanka seeks a longer period to settle its debts in accordance with the IMF programme. Currently, Sri Lankan authorities are in contact with the EXIM Bank of China on the debt issue. Besides, Sri Lanka has sought engagement with China at the highest level.
Sri Lanka owes nearly USD 7.8 billion dollars to China which includes lending from EXIM Bank of China and China Development Bank. In 2022, India extended Sri Lanka financial assistance amounting to USD 4 billion.