Glimmers of Debt Deal for Sri Lanka Raises China Pressure

Protestors from the National People's Power (NPP) party demonstrating in July against the impact of the government's IMF-mandated debt restructuring plan on pensions in Sri Lanka. Image: Ishara S. Kodikara / AFP

Sri Lanka’s major creditors, including India, Japan, and France, are nearing a debt deal by mid-October, according to the Japanese newspaper Sankei Shinbun. However, there are serious questions as to whether China (one of Sri Lanka’s largest bilateral creditors) will be part of the deal.

This puts much pressure on Sri Lankan President Ranil Wickremesinghe’s upcoming visit to Beijing to attend ceremonies marking the 10th anniversary of the Belt and Road Initiative. Wickremesinghe will reportedly discuss the debt issue with Chinese President Xi Jinping during the visit.

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Cobus van Staden

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
4 Trump’s Contradictory Iran Strategy Leaves U.S. Weaker After War’s End, Says Chinese Commentator
5
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
6
Thailand in Last-Minute U.S. Talks as 36% Tariff Looms

You Might Like

IMF Tells Sri Lanka to Gets Its Creditors in Line, Prompting Showdown With China

The Sri Lankan government suffered another setback in its ongoing effort to secure a $2.9 billion emergency financing package from the International Monetary Fund after the lender informed Colombo it would have to secure ...

World Bank President Nominee in China for Critical Meetings With Finance Leaders

Ajay Banga arrived in Beijing on Wednesday for the latest stop in his worldwide job interview to become the next president of the World Bank. Banga is scheduled to meet with Chinese Finance ...

Why Africa Shouldn’t Count on Janet Yellen for Debt Help

U.S. Treasury Secretary Janet Yellen is in Africa touting the Biden administration’s reenergized Africa policy. Her visit comes as several African countries are struggling with debt distress and Zambia and Ghana have officially defaulted. Debt’s prominence ...

Lots of Talk, Little Consensus and No Action Following G20 Debt Roundtable Discussion Among G20 Finance Ministers

The world’s most powerful finance ministers, central bank heads and development finance leaders met on Saturday in Bengaluru, India for a highly-anticipated roundtable that many hoped would unblock the current impasse on ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP