China has expressed its readiness to collaborate with relevant countries and international financial institutions to help Sri Lanka achieve debt sustainability.
Chinese Foreign Ministry Spokesperson Mao Ning, speaking to reporters in Beijing, stated that the Export-Import Bank of China was the first to tentatively agree on debt treatment with Sri Lanka. This agreement has been crucial for Sri Lanka to advance fiscal reforms and secure further support from international creditors.
On Wednesday, Sri Lanka signed debt treatment agreements in Beijing with the Export-Import Bank of China to restructure USD 4.2 billion of debt. According to the President’s Media Division, the framework agreement related to this restructuring was signed between Sri Lanka and China in Colombo. This restructuring provides significant debt relief, enabling Sri Lanka to allocate more funds to essential public services and resume concessional financing for critical infrastructure development.
State Minister Shehan Semasinghe shared the following on X:
“We are pleased to announce that Sri Lanka has signed a debt treatment agreement with the Export-Import Bank of China to restructure USD 4.2 billion of its debt. This move is part of an ongoing effort to manage the country’s financial challenges. The framework agreement for this debt treatment was signed between Sri Lanka and China in Colombo. The debt treatment agreement is a crucial step for Sri Lanka in stabilizing its economy and addressing its debt crisis.”
