Daily Mirror reports in its lead news story that China continues to refuse to enter into a common mechanism with other creditors in the restructuring process of Sri Lanka’s foreign debt. Sri Lanka Latest News
China is Sri Lanka’s major bilateral creditor.
Japan, India and France have built a common platform to make Sri Lanka’s foreign debt restructuring process a success, and China has participated in it as an observer.
French President Emmanuel Macron, who recently visited the island for a short visit, had promised to intervene to provide China’s support for Sri Lanka’s debt restructuring process. In addition, Finance Ministry officials as well as the President and the Prime Minister, who recently visited China, had requested China to support Sri Lanka’s foreign debt restructuring process.
However, China has rejected even the word “debt restructuring”, saying that the more appropriate word is “debt management”.
Sri Lanka’s debt to China is US$ 7.4 billion.
