ECONOMYNEXT – Sri Lanka is confident of China’s support in debt restructuring so that the island nation can begin meeting its debt service obligations, Central Bank of Sri Lanka (CBSL) Governor Nandalal Weerasinghe said.
In an interview with Bloomberg TV Tuesday April 11 night, Weerasinghe said it would be in the best interest of both countries to complete the restructuring process soon.
The central bank chief of the crisis-hit South Asian country said Sri Lanka is optimistic of China’s continued support, pointing to how Beijing “did the right thing in giving Sri Lanka financing assurances last time”.
“I think this is probably the first time China has given it that fast,” he said.
With the help of the International Monetary Fund and other partners who also helped share information, said Weerasinghe, the debt restructuring process can continue.
“Obviously China is a country that has been helping Sri Lanka for a long time and [it has[ invested a lot [in Sri Lanka]. [It will be in the] best interest of both China and Sri Lanka to complete this process soon and we can get back to repaying our debt service obligations,” he said.
“Sooner the better for both countries,” he added.
In February, China’s Exim Bank gave Sri Lanka a two-year moratorium on its defaulted loans and said it would discuss additional re-structuring within that ‘window’.
In early March, Sri Lanka secured a 2.9 billion dollar extended fund facility from the IMF after obtaining assurances of support from China. (Colombo/Apr12/2023)