Will China help bankrupt Sri Lanka? beijing says why not

China said it would “play a positive role” in helping Sri Lanka as it battles bankruptcy amid a debt crisis after agreeing to restructure its debts. Sri Lanka’s unprecedented economic crisis has resulted in severe shortages of food, fuel and medicine, as well as extended blackouts and rampant inflation.

According to news agency AFP, Foreign Ministry spokesman Mao Ning said, “China is ready to work with relevant countries and international financial institutions to help Sri Lanka deal with its current difficulties, reduce its debt burden.” Can do and achieve sustainable development. ,

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Asked about Sri Lankan President Ranil Wickremesinghe’s statement, Mao Ning said, “The Export-Import Bank of China, as an official bilateral creditor, issued a letter of financial assurance to Sri Lanka on March 6.”

Mao Ning stressed, China “supports relevant financial institutions in actively discussing debt settlement plans with the Sri Lankan side”. Sri Lanka is working to secure a much-needed IMF rescue package but its debt talks with China have stalled talks. China is Sri Lanka’s largest bilateral creditor. With Beijing’s approval that it will aid Sri Lanka, the final hurdle for an IMF bailout has been removed.

“Sri Lanka now has assurances of financing from all major bilateral creditors,” said Krishna Srinivasan, director of the IMF’s Asia and Pacific Department.

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