China says it will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate its current situation, ease its debt burden and achieve sustainable development.
Chinese Foreign Ministry Spokesperson Mao Ning on Tuesday (28) said the Export-Import Bank of China provided a financing support document to the Ministry of Finance, Economic Stabilization and National Policies of Sri Lanka, saying the Bank is going to provide an extension on the debt service due in 2022 and 2023 to help relieve Sri Lanka’s short-term debt repayment pressure.
“The Bank also noted that it will support Sri Lanka in its loan application to the IMF and continuously call on commercial creditors (including the International Sovereign Bondholders) to provide debt treatment in an equally comparable manner, and encourage multilateral creditors to do their utmost to make corresponding contributions,” she added.
“What China did is first based on China’s existing policy and position on debt issue. At the same time, as a special arrangement, it also reflects the traditional friendship between China and Sri Lanka. China’s action fully demonstrates its sincerity and efforts to support Sri Lanka in achieving debt sustainability,” she noted.
“We will 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,” said the spokesperson.