Sri Lanka’s IMF deal edges closer as China backs debt restructure

China has agreed to support Sri Lanka's debt restructuring, paving the way for an IMF rescue package. The package will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth. Sri Lanka owes about $40bn in public debt to creditors including China, Indi

March 7, 2023 . 4:34 PM

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China has agreed to support Sri Lanka's debt restructuring in a crucial step towards securing a $2.9bn IMF rescue package.
The IMF package has been pending for months as Sri Lanka sought to convince its creditors to agree a plan to restructure the bankrupt country's foreign debts.
Sri Lanka's president Ranil Wickremesinghe said his government had received a letter of support from China's Eximbank.
The IMF package will 'support the authorities' programme of ambitious reforms' that will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.
Sri Lanka owes about $40bn in public debt to creditors including China, India and Japan.