COLOMBO, SRI LANKA (AP) – Sri Lanka’s president said yesterday that China has given crucial debt restructuring assurances that mean the bankrupt Indian Ocean nation could get its USD2.9 billion bailout package approved soon.
President Ranil Wickremesinghe told Parliament that a letter from China’s EXIM bank with the necessary assurances was received on Monday night and immediately he and the Central Bank governor sent a letter of intent to the International Monetary Fund (IMF) for the final approval. “Now we have done our part, and I expect the IMF will do its share by the end of this month, by the third or fourth week,” Wickremesinghe said.
China owns about 10 per cent of Sri Lanka’s foreign debt, which exceeds USD51 billion. Its delayed assurances were seen as the last hurdle in securing the bailout deal after India and other creditors gave early pledges. Wickremesinghe said he expects financial assistance from the World Bank and the Asian Development Bank to start coming soon after the IMF deal is reached.
