China lost $7 billion from Sri Lankan debt restructuring

Colombo: China has suffered a loss of $7 billion from Sri Lanka’s external debt restructuring, a media report said on Tuesday.

The state-owned Daily News quoted Chinese Ambassador to Colombo Qi Zhenhong as saying that China was Sri Lanka’s first bilateral creditor to enter a restructuring agreement in October 2023.

“However the public does not know about these details. This is because we do not shout about our assistance to Sri Lanka." Sri Lanka went on to restructure USD 46 billion of external credit when the island nation announced its first sovereign default in the economic crisis of 2022.

The ambassador expressed hope that both China and India can work jointly to develop Sri Lanka’s northern province.

He said China was not in dispute with India as both countries have grown rapidly and should work together to achieve shared goals.

“I hope China, India and Sri Lanka can work together one day to implement a viable project here," the ambassador said.