China promises to restructure debt for Lanka

AS INVESTMENT WANES, XI MEETS U.S. BIZ EXECS

Chinese Premier Li Qiang has assured his Sri Lankan counterpart Dinesh Gunawardena of Beijing’s support to Colombo’s debt restructuring process as the island nation tries to resurrect its bankrupt economy.

Meanwhile, the Maldives government announced that 1,500 tonnes of drinking water donated by China from the glaciers in Tibet has reached the archipelago nation amidst an acute water shortage.

Gunawardena, who is on an official tour of China, met Li on Tuesday in Beijing, a statement from the Sri Lankan prime minister’s office said here. The two premiers also witnessed the signing of nine new agreements between China and Sri Lanka, it said without providing any details.

China is Sri Lanka’s largest bilateral lender owning 52 per cent of the $40 billion external debt when Sri Lanka announced its sovereign default in 2022.

The Chinese assurance comes days after the International Monetary

Beijing, March 27: China’s President Xi Jinping met US business leaders in Beijing on Wednesday, as the government tries to woo back foreign investors and international firms seeking reassurance about the impact of new regulations.

China wants to boost growth of the world’s second largest economy after foreign direct investment shrank 8% in 2023 amid heightened investor concern over anti-espionage law, exit bans, raids on consultancies and due diligence firms.

Fund (IMF), which concluded its second review of the $2.9 billion bailout with Sri Lanka, said reaching a deal with the country’s commercial creditors, the international bondholders and China Development Bank were keys to achieving debt sustainability.