Paris Club members express commitment towards debt restructuring with Sri Lanka

Sakshi Education

Paris Club members have expressed their commitment towards debt restructuring with Sri Lanka.
Sri Lanka’s President’s Media Division tweeted that the assurance is in accordance with the comparability of treatment principle and with the goal of restoring debt sustainability. The tweet further said that the other official bilateral creditors including China, have been urged to do the same in line with IMF program parameters by the Paris Club members.
China is the largest bilateral creditor and accounts for a debt of over 7 billion dollars which is over 19 percent of the total external debt of Sri Lanka. China has been under criticism for several of white elephant projects in Sri Lanka including the Hambantota port.
India had been the only major bilateral creditor to have given financing assurances to the IMF towards restructuring the debt earlier last month. Sri Lanka defaulted on its external debt in April last year as it spiralled into its worst-ever economic crisis since independence. India had also extended unprecedented assistance to the island nation to the tune of USD 4 billion.

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