China wants fair burden-sharing when restructuring Sri Lanka’s debt
By Easwaran Rutnam
China has called on commercial and multilateral creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing.
Responding to a question posed at a regular press briefing, Chinese Foreign Ministry Spokesperson Wang Wenbin said that the Export-Import Bank of China, as the official bilateral creditor, has stated clearly in its financing support documents to the Sri Lankan Finance Ministry that the Bank is going to provide an extension on the debt service due in 2022 and 2023.
As a result, Sri Lanka will not have to repay the principal and interest due on the Bank’s loans during that period, so as to help relieve Sri Lanka’s short-term debt repayment pressure.
“Meanwhile, the Bank would like to have friendly consultation with Sri Lanka regarding medium- and long-term debt treatment in this window period; and the Bank will make best efforts to contribute to the debt sustainability of Sri Lanka,” Wenbin said.
He also reiterated that China continues to support Chinese financial institutions in actively working out the debt treatment and will work with the relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development.
However, at the same time, he said China calls on commercial and multilateral creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing. (Colombo Gazette)
