Colombo: Sri Lanka has received a loan of up to 2 billion dollars from China this year alone, amid economic crisis. Its value in Indian rupees is Rs.15 thousand 995 crores.
If we calculate the investments and loans made by China in Sri Lanka in the last few years, the total is 8 billion dollars.
In this situation, Sri Lanka requested China to restructure the debt due to the continued economic slowdown in Sri Lanka.
It has been reported that China has contacted the Sri Lankan Finance Minister and is ready to consult with Chinese banks to resolve this issue.
However, China refused to comment directly on providing additional credit to Sri Lanka or on debt restructuring.
The spokesperson of the Chinese government said, ‘We have already sent a decision to the Ministry of Finance of Sri Lanka regarding the restructuring of the debt. Still no response from them. We also urged Sri Lanka to first complete the agreements made with international funds.
As of 2020, China’s total debt is estimated at $6.2 billion by the International Monetary Fund. In this, China and Japan have given large amount of loans to Sri Lanka.