Chinese Foreign Ministry Spokesperson Wang Wenbin said that China will continue to support Chinese financial institutions in actively working out the debt treatment for Sri Lanka.
He said that China will work with relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development.
Foreign Ministry Spokesperson Wang Wenbin called on commercial and multilateral creditors to take part in Sri Lanka’s debt restructuring based on fair burden-sharing.
He went on to note the Export-Import Bank of China, as the official bilateral creditor, stated clearly in its financing support documents to Sri Lankan finance ministry that the Bank is going to provide an extension on the debt service due in 2022 and 2023, which means Sri Lanka will not have to repay the principal and interest due of the Bank’s loans during the above-mentioned period, so as to help relieve Sri Lanka’s short-term debt repayment pressure.
He added that the Bank would like to have friendly consultation with Sri Lanka regarding medium- and long-term debt treatment in this window period; and the Bank will make best efforts to contribute to the debt sustainability of Sri Lanka.
Source: News First