Sri Lankan Prime Minister Dinesh Gunawardena said China — the island’s biggest
bilateral creditor — would “assist” Sri Lanka’s restructuring of external debt,
a key condition to maintaining a $2.9 billion IMF bailout.Beijing’s position on
debt restructuring has not been made public, but Sri Lankan officials have said
China was reluctant to take a haircut on its loans but could extend the tenure
and adjust interest rates..
Gunawardena said
Beijing had offered “assistance to develop” Colombo International Airport and
Hambantota port, the statement added, without giving further details.
Because of since Sri Lanka’s sovereign debt default, Japanese-funded
expansion of Colombo airport had been on hold ‘
Relationship between India and Sri Lanka was put to strain when the
island nation allowed a Chinese research vessel to visit it despite India’s
protest.