Sri Lanka enters terms with China’s Exim Bank on US $4.2 bn liability

Date:

Colombo (LNW): The Finance Ministry has declared a preliminary agreement with the Export-Import Bank of China concerning debt principles and terms.

This understanding involves roughly US $ 4.2 billion of the existing debt.

The Ministry believes this arrangement is instrumental in reinforcing Sri Lanka’s debt sustainability and will accelerate economic revival.

The government expects this significant progress to enhance discussions with the Official Creditor Committee and other commercial creditors, including bondholders.

Moreover, this development is anticipated to expedite the International Monetary Fund (IMF) Executive Board’s endorsement of the ongoing review, enabling the disbursement of the subsequent IMF finance segment of around US $ 334 million, the Ministry stated.

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