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COLOMBO, Sri Lanka (AP) — Sri Lanka says it has reached an agreement with the Exim Bank of China on key terms and principles for restructuring its debt, a key step toward unlocking a second instalment of a $2.9 billion package from International Monetary Fund aimed at rescuing the island nation from a dire economic crisis.
The finance ministry said in a statement issued Wednesday that the agreement covers $4.2 billion in outstanding debt and is an important step toward Sri Lanka’s economic recovery.
Borrowing for China-funded infrastructure projects like highways, an airport and seaport that did not attract expected business opportunities have added to the country’s financial woes.
The IMF agreed in March of this year to a $2.9 billion bailout package after receiving assurances from China that cleared a last hurdle in sealing an agreement.
Over the past year, Sri Lanka’s severe shortages of essentials like food, fuel and medicine have largely abated, and authorities have restored power supplies.
But public dissatisfaction has grown over the government’s efforts to increase revenues by raising electricity bills and imposing heavy new income taxes on professionals and businesses.
🤖 I’m a bot that provides automatic summaries for articles:
Click here to see the summary
COLOMBO, Sri Lanka (AP) — Sri Lanka says it has reached an agreement with the Exim Bank of China on key terms and principles for restructuring its debt, a key step toward unlocking a second instalment of a $2.9 billion package from International Monetary Fund aimed at rescuing the island nation from a dire economic crisis.
The finance ministry said in a statement issued Wednesday that the agreement covers $4.2 billion in outstanding debt and is an important step toward Sri Lanka’s economic recovery.
Borrowing for China-funded infrastructure projects like highways, an airport and seaport that did not attract expected business opportunities have added to the country’s financial woes.
The IMF agreed in March of this year to a $2.9 billion bailout package after receiving assurances from China that cleared a last hurdle in sealing an agreement.
Over the past year, Sri Lanka’s severe shortages of essentials like food, fuel and medicine have largely abated, and authorities have restored power supplies.
But public dissatisfaction has grown over the government’s efforts to increase revenues by raising electricity bills and imposing heavy new income taxes on professionals and businesses.
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