COLOMBO: The uncertainty and lack of clarity regarding the extent and time frame of China's restructuring of its debt to Sri Lanka is delaying Sri Lanka's bailout package from the IMF, according to Asian Lite.
Debt restructuring is one of the prerequisites of the IMF's bailout package for Sri Lanka. The process is, however, getting delayed due to Sri Lanka's dire situation and a delay in concrete commitment from China, the island nation's largest bilateral lender. Sri Lanka seems to be missing its December deadline. According to the Opposition legislator from the Tamil National Alliance, Shanakiyan Rasamanickam, China is acting as an impediment to Sri Lanka's IMF deal and has been paying bribes to force down unnecessary projects.
"If China is truly Sri Lanka's friend, ask the Chinese to help with the [debt] restructuring and the IMF programme." Referring to Rajapaksa-era mega infrastructure projects in Hambantota and Colombo funded by the Chinese, the Batticaloa MP, as quoted by Asian Lite, said: "That is not China being Sri Lanka's friend, that is China being Mahinda Rajapaksa's friend." The Chinese Embassy refuted the allegations and claimed that bilateral negotiations are on after working teams of different Chinese banks visited the island nation. Rasamanickam's allegations are incorrect, said the embassy. (ANI)
Also Watch: