China hopeful of feasible solution on Lanka’s debt crisis

The Chinese Embassy in Colombo reacting to the reaching of the Staff Agreement between Sri Lanka and the IMF expressed hope that Sri Lanka will continue work with China in the same spirit they extended earlier this year during the debt crisis to work out a feasible solution on debt.

A statement from the Embassy said;

“As a traditional friendly neighbor of Sri Lanka and a major shareholder of the International Monetary Fund, China has been always encouraging the IMF and other international financial institutions to continue to play a positive role in supporting Sri Lanka's response to current difficulties and efforts to ease debt burden and realize sustainable development.

As to the bilateral financial cooperation, shortly after the Sri Lankan government announced to suspend international debt payments in April 2022, Chinese financial institutions reached out to the Sri Lankan side and expressed their readiness to find a proper way to handle the matured debts related to China and help Sri Lanka to overcome the current difficulties. We hope Sri Lanka will work actively with China in a similar spirit and work out a feasible solution expeditiously.”