SL to seek new loan from China for debt restructuring

TPL | Published: 12:43 PM Jan 12 2022
Business SL to seek new loan from China for debt restructuring

A new loan is to be negotiated with China in order for Sri Lanka’s debt structuring purposes, according to Central Bank governor Ajith Nivard Cabraal.

“It is to cushion the debt repayment to China and we would try to negotiate a new loan for that purpose as well as for any other purpose,” he told the media in Colombo today (12).

We have an understanding that China would assist us in making the repayments in that form, he said.

Cabraal said further, “We are also negotiating with India to have a dollar facility in order to import goods from India.”

“So it’s an arrangement that would encourage us as well as help us to make repayments to those countries and at the same time promote more trade between the two countries as well,” the CBSL governor said.

Stressing that debt repayments will be honoured diligently, he said that adjusting debt portfolios was now in focus.

By the end of March, the CBSL will announce a new economic programme for the next nine months, he also said.

TPL | Published: 12:43 PM Jan 12 2022

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