The Export-Import Bank of China has told Sri Lanka it will not seek immediate repayment of debt for 2022 and 2023 and expedite negotiations on 'medium- and long-term debt treatment' to finalise specifics in the coming months, according to a letter seen by Reuters.
Sri Lankan rupees are seen in a bowl at a vegetable vendor's shop amid the rampant food inflation, amid Sri Lanka's economic crisis, in Colombo, Sri Lanka, July 29 , 2022. REUTERS/Kim Kyung-HoonCOLOMBO, March 8 - The Export-Import Bank of China has told Sri Lanka it will not seek immediate repayment of debt for 2022 and 2023 and expedite negotiations on "medium- and long-term debt treatment" to finalise specifics in the coming months, according to a letter seen by Reuters.
Sri Lanka is facing its worst economic crisis in more than seven decades and a shortage of dollars has disrupted imports of essentials, though the situation has improved this year from last year when protesters ousted a president. China has extended its "firm support to Sri Lanka through a debt treatment", EXIM Bank wrote in the letter to the Sri Lankan government on March 6.
"You will not have to repay the principal and interest due of the bank's loans during the above-mentioned period, so as to help relieve your short-term debt repayment pressure," the bank's vice president, Zhang Wencai, said in the letter.
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