Creditors to Sri Lanka, including China, should restructure debt: USAID administrator – creditors to sri lanka, including china, should restructure debt usaid administrator

Colombo, Sep 11 (PTI) The US stands ready to assist Sri Lanka in its debt restructuring process and all lenders to the island nation, including China, should cooperate in this effort. An American diplomat said this on Sunday.

Sri Lanka earlier this month inked an employee-level agreement with the International Monetary Fund (IMF) for a US$2.9 billion relief package.

The IMF has said that all lenders to Sri Lanka, including China, will have to agree to a restructuring of their existing debts before issuing the loan.

USAID Administrator Samantha Power said, “It is imperative that all Sri Lankan lenders, especially China, cooperate openly in this process. When the debt taken out becomes volatile, as in Sri Lanka, this collaboration can mean the difference between life or death, prosperity or poverty.

According to an estimate, Sri Lanka has to pay a debt of US $ 2 billion to China this year.