Cash-strapped Sri Lanka is likely to receive aid from its biggest bilateral creditor, China, ahead of an IMF rescue plan. China has pledged to tackle the island’s debt problems before finalizing a $41 billion internal debt restructuring by September ahead of the International Monetary Fund (IMF), according to a PTI agency report.
Cash-strapped Sri Lanka is likely to receive aid from its biggest bilateral creditor, China, ahead of an IMF rescue plan. China has pledged to tackle the island’s debt problems before finalizing a $41 billion internal debt restructuring by September ahead of the International Monetary Fund (IMF), according to a PTI agency report.
The IMF will conduct the first review of the $2.9 billion bailout awarded to Sri Lanka in March this year from September 11-19.
The IMF will conduct the first review of the $2.9 billion bailout awarded to Sri Lanka in March this year from September 11-19.
Chinese Foreign Minister Wang Yi said, “China has always been Sri Lanka’s trusted strategic partner, and we highly appreciate Sri Lanka’s always being friendly to China and supporting China on issues related to its core interests.” ‘ said.
Chinese Foreign Minister Wang Yi said, “China has always been Sri Lanka’s trusted strategic partner, and we highly appreciate Sri Lanka’s always being friendly to China and supporting China on issues related to its core interests.” ‘ said.
Crisis-hit Sri Lanka is negotiating with external creditors to meet the IMF’s initial review requirements. The Washington-based financier approved a nearly $3 billion bailout for crisis-hit Sri Lanka in March this year.
Crisis-hit Sri Lanka is negotiating with external creditors to meet the IMF’s initial review requirements. The Washington-based financier approved a nearly $3 billion bailout for crisis-hit Sri Lanka in March this year.
The county has until next month to agree on a $41 billion debt restructuring program with all external creditors.
The county has until next month to agree on a $41 billion debt restructuring program with all external creditors.
An initial review will look at the performance of the program through the end of June and, if approved by both the staff and the Board, will allow approximately $338 million to be disbursed to Sri Lanka.
An initial review will look at the performance of the program through the end of June and, if approved by both the staff and the Board, will allow approximately $338 million to be disbursed to Sri Lanka.
Last year, Sri Lanka suffered its worst economic crisis in history when it ran out of foreign currency to finance essential food, fuel and medicines and defaulted on $46 billion in external debt. As a result, citizens took to the streets to protest against shortages of fuel, fertilizer, and supplies.
Last year, Sri Lanka suffered its worst economic crisis in history when it ran out of foreign currency to finance essential food, fuel and medicines and defaulted on $46 billion in external debt. As a result, citizens took to the streets to protest against shortages of fuel, fertilizer, and supplies.
India also supported Sri Lanka in line with its “neighborhood first” policy. India provided about $4 billion in diversified aid last year through multiple lines of credit and currency bailouts.
India also supported Sri Lanka in line with its “neighborhood first” policy. India provided about $4 billion in diversified aid last year through multiple lines of credit and currency bailouts.