Sri Lanka in progressive talks with China on debt restructuring, submits all details: Minister

• China holds 19.6 per cent of Sri Lanka‘s external debt
• US$7.4Bn debt to China makes up 52 per cent of the island nation’s total bilateral debt

By Kelum Bandara

The Central Bank has submitted all relevant information to the Chinese banks as part of talks on debt restructuring, State Minister of Finance Shehan Semasinghe said yesterday. The Minister told Daily Mirror yesterday that progressive dialogue is in place with China on the matter despite some individual MPs making ad hoc remarks otherwise.

 He said Sri Lanka is hopeful that China will cooperate in this regard.

“We are planning to strike the deal with the International Monetary Fund (IMF) this month. Or else, we will aim at it next month after completion of talks with our creditors,” he said.

China held 19.6 per cent of Sri Lanka’s US$37.6 billion external debt at the end of 2021, higher than the often cited figure of 10-15 per cent, according to the China Africa Research Initiative at the Johns Hopkins University School of Advanced International Studies, the foreign media reported. Sri Lanka’s US$7.4 billion debt to China makes up 52 per cent of the island nation’s total bilateral debt, having all been reported to the World Bank, said the report, citing loan agreements and information received from the Sri Lankan government

Meanwhile, the Chinese embassy says there is no debt-to-equity swap for the Hambantota port. It says there is no asset seizure.

•  The Chinese embassy says there is no debt-to-equity swap for the Hambantota port. It says there is no asset seizure