Debt restructuring: SL, China on same page

In late September, the Export-Import Bank of China had tentatively agreed with Sri Lanka on the debt treatment, Chinese Foreign Ministry Spokesperson, Wang Wenbin said on Tuesday (10) during his regular press conference.

He said this answering a question posed by a journalist from China Central Television (CCTV).

CCTV: “Sri Lanka’s debt restructuring is at a crucial stage. What help has China provided to the process? Has there been progress in bilateral debt treatment?”

Wang Wenbin: “As Sri Lanka’s friend and neighbour, China follows closely the difficulties and challenges facing the country. We have been doing what we can to assist in its economic and social development.

Since last year, China’s relevant financial institutions have been in close touch with Sri Lanka on the debt issue involving China, engaged in active bilateral consultations and provided a financing support document to Sri Lanka in a timely manner to help it obtain loans from the IMF. Chinese financial institution has taken part in all the creditors’ meetings as an observer and maintained friendly communication with other creditors to share with them the progress of the debt treatment.

“In late September, as official creditor, the Export-Import Bank of China tentatively agreed with Sri Lanka on the debt treatment. We are also glad to see that other creditors are having discussion with Sri Lanka as well over solutions to its debt issue.

We will continue to support Chinese financial institutions in actively consulting with Sri Lanka. We are ready to work with 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. We call on multilateral institutions and commercial creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing.”