‘The ball is in Sri Lanka’s court’, says China on debt restructuring request – Times of India – India Times English News

Colombo: China has said “the ball is in” Sri LankaIt refrained from responding directly to the island nation’s request to restructure its debt, according to a media report here on Saturday.
Sri Lanka is urging China to restructure its debt as the country grapples with a severe economic crisis. It is estimated that Sri Lanka owes China a debt of 1.5 to 2 billion dollars this year. Overall, China’s debt and investment in Sri Lanka is estimated to exceed $8 billion over the past few years.
But Beijing has not yet made any public commitments for debt relief assistance to Sri Lanka.
A spokesman for the Chinese embassy was quoted as saying by the Daily Mirror News website that Beijing has informed China. Sri Lankan Ministry of Finance About his readiness to discuss how to resolve the loan issue with Chinese banks three months ago.
China encouraged its banks to discuss it. The Chinese position was also communicated during the telephonic conversation between the Chinese Prime Minister li keqiang And then the Prime Minister of Sri Lanka Mahinda RajapaksaThey said.
“We sent proposals to the finance ministry. But, there was no reply from their side. At the same time, Sri Lanka insisted that it should complete the agreement with International Monetary Fund (IMF) First. The ball is in Sri Lanka’s court,” said the spokesperson.
Sri Lanka’s total bilateral debt was estimated by the IMF to be $6.2 billion at the end of 2020. The report said that Japan and China held the largest shares.
India has provided nearly $4 billion this year to help keep Sri Lanka’s economy afloat, mainly through credit lines and swaps. Sri Lanka also has an international sovereign bond debt of $14 billion.