In January, Sri Lanka sought help from China
Sri Lanka has about $ 7 billion in external debt obligations in 2022, including the prepayment of $ 1 billion in bonds in July 2022. Despite huge Chinese investment in Sri Lanka over the years, the country is going through the worst economic crisis in its history. In light of the major political implications of the current crisis, President Gotabaya Rajapaksa, during a visit to Sri Lanka in January this year, requested Chinese Foreign Minister Wang Yi to restructure debt repayment.
India and Sri Lanka have signed a line of credit
Just days after Colombo secured a িয়ন 1 billion credit from New Delhi, Sri Lanka sought a new $ 2.5 billion loan from China and buyer credit as the island nation struggled with its worst economic downturn. In Rajapaksa, the government is negotiating with the International Monetary Fund for some relief.
Qi Zhenhong, China’s ambassador to Sri Lanka, may have said that China was considering a new request for a $ 1 billion loan and a $ 1.5 billion loan line from Sri Lanka. He says this is in addition to the $ 2.8 billion aid that China has provided to Sri Lanka since the onset of the epidemic.