26 March 2024 12:00 am Views - 336
By Kelum Bandara
State Minister of Finance Shehan Semasinghe who is in the delegation of Prime Minister Dinesh Gunawardena visiting China, will hold talks with EXIM Bank of China and China Development Bank to complete the debt restructuring plan.
Sri Lanka is now about to conclude a debt restructuring plan with India and the Paris Club, with a likely moratorium of up to six years and a reduced interest rate during the repayment period.
Sri Lanka will separately deal with China, the largest bilateral creditor, which has loaned around US $ 7 billion to the country. All the creditor nations have asked for an even-handed approach from Sri Lanka in debt treatment.
Before taking wings to China, Minister Semasinghe told Daily Mirror that Sri Lanka reached the agreement in principle with EXIM Bank of China and it should be converted to a MoU (Memorandum of Understanding).
“I will hold talks in this regard,” he said. Besides, he said the country is yet to reach the agreement in principle with China Development Bank which is responsible for commercial loans granted to Sri Lanka for various projects,” he said.
For China Development Bank, the total outstanding amount (including the unpaid principal) remained at US $ 535. 2 million. Sri Lanka owed EXIM Bank US $ 4 billion by the end of last year.
The delegation led by the Prime Minister arrived in Beijing, China yesterday, and was welcomed by Executive Vice Minister of Foreign Affairs Sun Weidong and senior officials and Acting Ambassador K.K. Yoganandan.
He left for China as the chief guest of Boao Conference, which is China’s premier annual international conference.
Sri Lanka likely to secure six year moratorium from India, Paris Club
Sri Lanka will separately deal with China, the largest bilateral creditor, which has loaned around US $ 7 billion to the country. All the creditor nations have asked for an even-handed approach from Sri Lanka in debt treatment.
Before taking wings to China, Minister Semasinghe told Daily Mirror that Sri Lanka reached the agreement in principle with EXIM Bank of China and it should be converted to a MoU (Memorandum of Understanding).
“I will hold talks in this regard,” he said. Besides, he said the country is yet to reach the agreement in principle with China Development Bank which is responsible for commercial loans granted to Sri Lanka for various projects,” he said.
For China Development Bank, the total outstanding amount (including the unpaid principal) remained at US $ 535. 2 million. Sri Lanka owed EXIM Bank US $ 4 billion by the end of last year.
The delegation led by the Prime Minister arrived in Beijing, China yesterday, and was welcomed by Executive Vice Minister of Foreign Affairs Sun Weidong and senior officials and Acting Ambassador K.K. Yoganandan.
He left for China as the chief guest of Boao Conference, which is China’s premier annual international conference.