China to provide another loan to settle existing loans

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China has agreed to provide another loan to tackle Sri Lanka’s economic crisis.

Speaking during the weekly Cabinet media briefing today (26), Co-Cabinet Spokesman Minister Nalaka Godahewa said the country is in need of debt restructuring.

However, presently, China is not in favour of debt restructuring as it will affect their loan commitments with other nations, he said.

Therefore, as an alternative to debt restructuring, China has proposed to provide a further loan in order to pay off existing loans.

Godahewa said discussions are still in the preliminary stage and added that Finance Minister Ali Sabri will table a detailed briefing at the Parliament.