China reiterates calls on commercial, multilateral creditors to participate in SL debt restructuring
Posted on April 15th, 2023
Courtesy Adaderana
China has reiterated the calls on commercial and multilateral creditors to jointly participate in Sri Lanka’s debt restructuring under the principle of fair burden-sharing.
According to Chinese foreign ministry spokesperson Wang Wenbin, the Asian economic giant has been in close communication with Sri Lanka and supported Chinese financial institutions in actively discussing debt treatment arrangements with Sri Lanka.
Wang mentioned this during a regular press briefing on Friday (April 14), in response to a question pertaining to the formal launch of discussions by Sri Lanka’s major bilateral creditors to restructure the island nation’s debt without China.
On Thursday (April 13), Japan, India and France held a press briefing to announce a common platform for talks among bilateral creditors to coordinate the restructuring of Sri Lanka’s debt.
The three creditor countries have been working closely for a coordinated debt restructuring process for the island nation.
Sri Lanka owes USD 7.1 billion to its bilateral creditors with USD 3 billion owed to China – its biggest bilateral lender, USD 2.4 billion to the Paris Club and USD 1.6 billion to India.