(LANKAPUVATH | COLOMBO) – China on Wednesday said that it is ready to work with other relevant countries and play a positive role in helping Sri Lanka to ease its debt burden and achieve sustainable development.
“China is ready to work with relevant countries and international financial institutions to play a positive role in helping Sri Lanka cope with its current difficulties, ease its debt burden and achieve sustainable development,” said foreign ministry spokesperson Mao Ning at a regular briefing.
Responding to media queries on Sri Lanka’s debt, the Spokesperson said on March 6, the Export-Import Bank of China, as the official bilateral creditor, provided a financing support document to Sri Lanka.
She reiterated that China supports relevant financial institution in having active consultations with Sri Lanka on debt treatment.
“In the meantime, we also see the necessity of fair burden-sharing and believe that both commercial and multilateral creditors should take part in Sri Lanka’s debt restructuring,” Ms. Mao clarified.
When asked about the assurance given by the EXIM Bank of China to Sri Lanka that it will not seek immediate repayment of debt for 2022 and 2023 and will expedite the negotiations on medium and long term debt treatment to finalize specifics in the coming months, Mao Ning reiterated that the EXIM Bank had provided Sri Lanka with a letter expressing support for its debt sustainability.
“The EXIM Bank of China had provided Sri Lanka with a letter expressing support for its debt sustainability, saying the Bank is going to provide an extension on the debt service due in 2022 and 2023. On March 6, it provided the country with another financing support document. This fully speaks to China’s sincerity and action to support Sri Lanka’s effort to achieve debt sustainability,” the Foreign Ministry Spokesperson said.”
