Sri Lanka says it has reached an agreement with China's EXIM Bank on debt, clearing IMF funding snag
Sri Lanka claims to have reached a deal on key terms and principles on its debt restructuring with the Exim Bank of China
By News Desk
Published - Oct 12, 2023, 03:09 AM ET
Last Updated - Oct 12, 2023, 05:30 AM EDT
Sri Lanka has reached an agreement with China's Exim Bank covering a $4.2-billion debt repayment. This removes a major obstacle to getting more International Monetary Fund (IMF) funding to tide over further default threats.
The second installment of a $2.9-billion package from IMF was stuck on the pending repayments to Chinese creditors.
The Sri Lankan Finance Ministry said in a statement on Wednesday that the deal with the creditor was a major step in guiding the national economic recovery, a report from the Associated Press said.
The statement said the deal allows Colombo more space to implement its economic reform agenda.
