Sri Lanka to reach MoU on debt restructuring with Chinese EXIM Bank soon

• Agreement in principle to be reached with China Development Bank  
• State Minister Shehan Semasinghe in China to hold talks  

By Kelum Bandara 

State Minister of Finance Shehan Semasinghe who is in the  delegation of Prime Minister Dinesh Gunawardena visiting China, will  hold talks with EXIM Bank of China and China Development Bank to  complete the debt restructuring plan.   

Sri Lanka is now about to conclude a debt restructuring plan  with India and the Paris Club, with a likely moratorium of up to six  years and a reduced interest rate during the repayment period. 

Sri Lanka  will separately deal with China, the largest bilateral creditor, which  has loaned around US $ 7 billion to the country. All the creditor  nations have asked for an even-handed approach from Sri Lanka in debt  treatment.   
Before taking wings to China, Minister Semasinghe told  Daily Mirror that Sri Lanka reached the agreement in principle with EXIM  Bank of China and it should be converted to a MoU (Memorandum of  Understanding).   

“I will hold talks in this regard,” he said. Besides, he  said the country is yet to reach the agreement in principle with China  Development Bank which is responsible for commercial loans granted to  Sri Lanka for various projects,” he said.  

For China Development Bank, the total outstanding amount  (including the unpaid principal) remained at US $ 535. 2 million. Sri  Lanka owed EXIM Bank US $ 4 billion by the end of last year.   

• Sri Lanka likely to secure six year moratorium from India, Paris Club

The delegation led by the Prime Minister arrived in  Beijing, China yesterday, and was welcomed by Executive Vice Minister  of Foreign Affairs Sun Weidong and senior officials and Acting  Ambassador K.K. Yoganandan.   

He left for China as the chief guest of Boao Conference, which is China’s premier annual international conference.      

Sri Lanka likely to secure six year moratorium from India, Paris Club  

Sri Lanka  will separately deal with China, the largest bilateral creditor, which  has loaned around US $ 7 billion to the country. All the creditor  nations have asked for an even-handed approach from Sri Lanka in debt  treatment.   
Before taking wings to China, Minister Semasinghe told  Daily Mirror that Sri Lanka reached the agreement in principle with EXIM  Bank of China and it should be converted to a MoU (Memorandum of  Understanding).   
“I will hold talks in this regard,” he said. Besides, he  said the country is yet to reach the agreement in principle with China  Development Bank which is responsible for commercial loans granted to  Sri Lanka for various projects,” he said.  

For China Development Bank, the total outstanding amount  (including the unpaid principal) remained at US $ 535. 2 million. Sri  Lanka owed EXIM Bank US $ 4 billion by the end of last year.   

The delegation led by the Prime Minister arrived in  Beijing, China yesterday, and was welcomed by Executive Vice Minister  of Foreign Affairs Sun Weidong and senior officials and Acting  Ambassador K.K. Yoganandan.   
He left for China as the chief guest of Boao Conference, which is China’s premier annual international conference.