Sri Lanka is in the process of submitting itself to debt restructuring with the International Monetary Fund (IMF) but China disapproves of this move, said Cabinet Spokesman Nalaka Godahewa, speaking to the briefing held in announcing Cabinet decisions today (26).
“We have already informed our creditors that we are unable to repay the debts. When we talk about restructuring these debts, we are aware that there are several camps who are willing to lend to us. One is the West and the other are countries like China. So, although Western countries are more likely to support progressively towards the IMF’s approval, China’s position is that if it tries to restructure debt in one country, it will affect other countries as well. Instead, they suggest that instead of restructuring the debt they will be ready to provide another debt to settle the existing debts. Therefore, this is at the initial discussion level.”
MIAP
