Crisis-hit SL asks China to restructure debt repayments

by IANS |

New Delhi, Jan 10 (IANS) Sri Lankan President Gotabaya Rajapaksa has asked China to restructure the crisis-hit island nation's debt repayments as part of efforts to help the South Asian country navigate its worsening financial situation, the BBC reported.

Rajapaksa made the request during a meeting with Chinese Foreign Minister Wang Yi on Sunday.

In the last decade, China has lent Sri Lanka over $5 billion for projects including roads, an airport and ports, the BBC report said.

China is Sri Lanka's fourth biggest lender, behind international financial markets, the Asian Development Bank and Japan.

But critics say the money was used for unnecessary schemes with low returns.

"The President pointed out that it would be a great relief to the country if attention could be paid on restructuring the debt repayments as a solution to the economic crisis that has arisen in the face of the Covid-19 pandemic," Rajapksa's office said in a statement.

The statement also said China was asked to provide "concessional" terms for its exports to Sri Lanka, which amounted to around $3.5 billion last year, without providing further details, the report added.

Rajapaksa also offered to allow Chinese tourists to return to Sri Lanka provided they adhere to strict coronavirus regulations.

Before the pandemic, China was Sri Lanka's main source of tourists and it imports goods from the Asian giant more than from any other country.

In recent months, Sri Lanka has been experiencing a severe debt and foreign exchange crisis, which has been made worse by the loss of tourist income during the pandemic, the BBC report said.

The country has received billions of dollars of soft loans from China but the island-nation has been engulfed in a foreign exchange crisis which some analysts have said has pushed it to the verge of default, as per the BBC report.

Sri Lanka has to repay about $4.5 billion in debt this year starting with a $500 million international sovereign bond, which matures on January 18.

Latest News
IPL 2024: 'Sai Kishore did not expect I will go after him off the first ball', says CSK's Shivam Dube Fri, Mar 29, 2024, 03:55 PM
Talks with Ukrainian FM focused on conflict with Russia, says EAM Jaishankar Fri, Mar 29, 2024, 03:49 PM
Started my career on shop floor of auto plant: Anand Mahindra to Elon Musk Fri, Mar 29, 2024, 03:42 PM
Chinese military offers help to Pakistan to curb terrorism Fri, Mar 29, 2024, 03:39 PM
Kangana Ranaut holds roadshow in Mandi, responds to Supriya Shrinate's 'bhao' jibe Fri, Mar 29, 2024, 03:36 PM
CPI tries to revive itself by launching ex-IPS officer in UP's Faizabad Fri, Mar 29, 2024, 03:29 PM
Mandya in Karnataka to witness mega clash between Kumaraswamy and Star Chandru Fri, Mar 29, 2024, 03:26 PM
I-T seizes unaccounted cash from Kolkata bizman's office Fri, Mar 29, 2024, 03:24 PM
Byju's EGM on rights issue ends sans objections, dissenting investors skip meet Fri, Mar 29, 2024, 03:12 PM
Anti-abuse provisions should not be used in receipt of capital from credible investors: Experts Fri, Mar 29, 2024, 03:09 PM
UP: Kamaal R Khan's brother to contest from Saharanpur on BSP ticket Fri, Mar 29, 2024, 02:59 PM
Pakistan: Alarm bells ring as judicial bodies gear up to protect their judges against 'targeted assault' Fri, Mar 29, 2024, 02:50 PM
Judicial probe ordered in Mukhtar Ansari's death Fri, Mar 29, 2024, 02:46 PM
Stories come knocking, characters start whispering to me: Filmmaker Rima Das Fri, Mar 29, 2024, 02:45 PM
Magisterial probe ordered into Mukhtar Ansari's death Fri, Mar 29, 2024, 12:52 PM