China Assures Sri Lanka Of Support In Addressing $41 Billion Debt Challenge Ahead Of IMF Review
Colombo, August 18 (TNA) China, Sri Lanka's largest bilateral creditor, has pledged assistance to tackle the island nation's daunting debt challenges. Sri Lanka is set to finalize the restructuring of a substantial $41 billion external and domestic debt by September, in preparation for the International Monetary Fund's (IMF) first review of the $2.9 billion bailout granted earlier this year. The IMF review is scheduled from September 11 to 19.
Wang Yi, China's Foreign Minister and Director of the Office of the Foreign Affairs Commission of the Communist Party of China (CPC) Central Committee, conveyed this commitment during a meeting with Sri Lanka Prime Minister Dinesh Gunawardena.
Wang emphasized the strong strategic partnership between China and Sri Lanka, highlighting the countries' mutual support on core interest issues.
To meet the conditions of the IMF review, Sri Lanka is engaging in negotiations with its external creditors. The IMF's mission to Colombo for the review is planned from September 14 to 27.
The nation's economy experienced severe strains last year due to dwindling foreign exchange reserves and shortages in fuel and essential commodities, triggering public protests. To weather the crisis, Sri Lanka received support from various sources, including Indian credit lines totaling over $4 billion."