Sri Lanka in Talks With China on Refinancing Debt

Sri Lanka Flag - Sputnik International, 1920, 26.04.2022
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NEW DELHI (Sputnik) - Sri Lanka has started talks with China on refinancing its debt, Sri Lankan Mass Media Minister Nalaka Godahewa said on Tuesday.
"Now that IMF [International Monetary Fund] is ready to cooperate with Sri Lanka, other countries are aware that we have support. We were guaranteed the support of the World Bank and other [financial] agencies," Godahewa said, adding that the negotiations with Beijing are at an early stage.
Beijing is Colombo's biggest creditor with the amount of loans totalling $3.5 billion, according to Adaderana news outlet.
Last Tuesday, the Sri Lankan Finance Ministry said the IMF and India pledged assistance to mitigate the economic crisis that has gripped the country.
Sri Lanka is now facing its worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by a clampdown on tourism during the COVID-19 pandemic. It left the country unable to buy enough fuel, with people facing an acute scarcity of food and basic necessities, heating fuel, and gas.
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