China is adopting a ‘delay’ strategy in restructuring Sri Lanka’s debt. Image Credit source: Representational Image
If Sri Lanka has to come out of its economic crisis, some important decisions will have to be taken soon. So says the International Monetary Fund (IMF). Based on these decisions of Sri Lanka, it will be able to get a bailout package of $ 2.9 billion (about 23,944 crore Indian rupees).
Actually the IMF has asked Sri Lanka to restructure its debt. This includes the loan taken from China. If Sri Lanka decides about this before October, then only it will get a bailout package from the IMF.
This is how China is troubling Sri Lanka
In a news of Daily Mirror, it has been said that China is adopting a ‘delay’ strategy in restructuring Sri Lanka’s debt. This shows that without his help, it would be difficult for Sri Lanka to get a bailout package from the IMF.
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China’s role as the main lender of credit to Sri Lanka had caught the attention of the world. Now China’s delay shows that it is keeping an eye on the IMF’s bailout package. At the same time, being one of the largest lenders to Sri Lanka, China is also looking into what is the stand of other countries on the bailout package that Sri Lanka gets from the IMF.
When the IMF had agreed to give a bailout package to Sri Lanka, President Ranil Wickremesinghe had said that in the eyes of the world, Sri Lanka would no longer remain ‘bankrupt’.
IMF team is present in Colombo
Quoting the news of Daily Mirror, the agency said that an IMF team is in Colombo. He is hopeful that the process of restructuring Sri Lanka’s debt will be completed soon. It is likely to be completed by September and October this year.
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Recently, Afreen Akhtar, Deputy Assistant Secretary of the US Bureau of South and Central Asian Affairs, also visited Sri Lanka. He also talked about the need for China’s official participation regarding Sri Lanka’s loan.