Debt restructuring: SL seeks phone dialogue with Chinese President

• China has assured that it will offer a two-year moratorium on debts offered to Sri Lanka through EXIM Bank

By Kelum Bandara   

The government has sought a telephone conversation between President Ranil Wickremesinghe and Chinese President 

Xi Jinping to discuss debt restructuring and the future of bilateral relations, an informed source said .  

China , India and Japan are the largest bilateral creditors to Sri Lanka . Their assurances are key to unlock the US $ 2.9 billion programme with the International Monetary Fund (IMF).   China has assured that it will offer a two-year moratorium on debts offered to Sri Lanka through EXIM Bank.   However , the United States Under Secretary of State Victoria Nuland who visited Sri Lanka said India gave positive assurance but what China offered was not enough to meet the IMF debt sustainability criteria .   Chinese Foreign Ministry spokesperson Mao Ning hit out at the US Under Secretary’s comments saying they do not reflect the truth.  

She asked the United States to “show some sincerity and actually do something to help Sri Lanka weather through the current difficulties” rather than “jabbing fingers at China’s close cooperation with Sri Lanka.”   “As a friendly neighbour and true friend, China has been closely following the difficulties and challenges facing Sri Lanka and providing assistance for the island’s economic and social development to the best of China’s capabilities,,” she said.