Breakthrough in restructuring debts with China: Finance Secretary to visit Beijing soon

3 July 2023 08:59 am - 11 - {{hitsCtrl.values.hits}}

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In what appeared to be a breakthrough in the restructuring of external debts, China has pledged to fully cooperate in the process, and Finance Ministry Secretary Mahinda Siriwardane will travel to Beijing soon to work out nitty-gritties, Daily Mirror learns.

China is the largest bilateral creditor to Sri Lanka to be followed by India and Japan as the other two top lenders.. By the end of 2020, Sri Lanka owed China’s Exim Bank US $ 2.83 billion.in total, Sri Lanka owed Chinese lenders US $7.4 billion by end-2022, according to calculations by the China Africa Research Initiative. The Chinese government has authorized EXIM Bank to engage with the Sri Lankan authorities on debt restructuring.

Japan, India and France have now announced a common platform for talks among bilateral creditors to coordinate the restructuring of Sri Lanka’s debt.

Foreign Minister Ali Sabry who visited China recently held talks with EXIM Bank Chairman Wu Fulin. According to an informed source, the Chinese authorities had made constructive assurances on debt restructuring.

The source said China would observe discussions among Japan, India and France regarding Sri Lanka’s debt restructuring process. Sri Lanka has assured all that comparable treatment will be ensured to all the creditors. “The Finance Ministry Secretary will be travelling to China soon to work out arrangements for debt restructuring. It will be comparable treatment to all. China will observe agreements with other creditors. Afterwards, it will agree to a bilateral arrangement with Sri Lanka,” the source said.

Parliament approved on Saturday the government’s Domestic Debt Restructuring (DDR) programme.(Kelum Bandara)

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Comments - 11

Jagath Leanage Monday, 03 July 2023 09:22 AM

Domestic DEBT , Foreign DEBT . DEBTS , DEBTS , DEBTS .

Dee Monday, 03 July 2023 10:41 AM

Yup. When you spend beyond your means = you need to get into debt. Example if the cost of a liter of kerosene is 150/- and you keep selling it at 75/- , people will be happy but whoever who is subsidizing will be in debt unless his income is more than his expenses. In a place where the majority depends on subsidies and expenses (state services) answer is obvious

Jagath Leanage Monday, 03 July 2023 09:24 AM

Can we know the Total external DEBTS ?

Prasanna Monday, 03 July 2023 09:59 AM

USD 42Bn

Jude Monday, 03 July 2023 09:28 AM

The biggest circus in town known as Debt restructuring!! Yeah you borrow money and down the road you do DDR Huh, people get use to it.

Sivalingam Monday, 03 July 2023 10:45 AM

French protesters are sick of the ruling elite. Its It's a matter of time before it spreads.

Frind Monday, 03 July 2023 11:14 AM

First of all, it will be worth considering the settlement of India's debt to relieve unnecessary problems that will lead to internal ETHNIC issues in Sri Lanka. India's further involvement in Sri Lanka is so DANGEROUS, therefore, kicking out from the scene is vital for this moment. Other nations can be dealt with freely.

Mahila Monday, 03 July 2023 12:28 PM

Dear Friend Frind, You are right on the Money!!!??? Big question is, where on earth we find that kind of Money!!!??? Even if they find money, lying undeclared corner, others Lenders (Paris Club, Japan and Importantly, China) would never allow you to do that!!!??? They would demand their Share of Money Lent FIRST, or ATLEAST EQUITABLY settled!!!??? READ the ARTICLE WELL in detail, BEFORE commenting! Hopefully when you ate the Rice and ‘Dhal’ given by India, which possibly came from Tamil Nadu state, which is called “Toilet Nadu”, it tasted Very Nice, unlike ‘TOILET GOODIES’, one would expect!!!?? PANGS OF HUNGER DUE STARVATION CAUSED BY DEAR MESSIAH’S, MADE TO SWALLOW FAST!? There wasn’t much retention time in the mouth and tongue to sense, unlikely taste!!?? ALL GOOD THAT ENDS WELL!!??

sam Monday, 03 July 2023 12:51 PM

More expenses for the poor

Ram Monday, 03 July 2023 03:10 PM

China will agree to restructuring but that may not come in our favour. They are cunning and before agreeing the negotiators must discuss any proposal with the relevant SL Departments

Buddhist Monday, 03 July 2023 07:01 PM

This is an eyewash, China has been saying it will help SL but has not done anything in debt restructuring. This is similar to China's promise to bring thousands of industries to the Southern Port Free Trade Zone. Only talk!

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Breakthrough in restructuring debts with China: Finance Secretary to visit Beijing soon

Comments - 11

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