Country: Sri Lanka
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Debt in Africa: Everyone’s Watching What China Does in Zambia
The United Nations Development Program issued a new report this week that once again sounded the alarm on the urgent need for debt relief in the world's poorest countries. The UNDP said 54 countries are at risk, with African countries accounting ...
After Months of Delay, China Finally Begins Debt Restructuring Talks With Sri Lanka
Sri Lankan President Ranil Wickremesinghe informed the country's parliament late last week that China had finally agreed to begin long-desired debt restructuring talks. During a recent visit to Tokyo, President Wickremesinghe also called on Japan, Sri Lanka's other main creditor in addition to China and ...
As China Nitpicks Terms, Asia’s Debt Bomb is Ticking…
As technocrats in Sri Lanka and Laos grapple with renegotiating loans to a variety of creditors, including China, the region's creeping debt distress is slowly tipping into a full-blown humanitarian disaster. The situation is the most critical in Sri Lanka, where ...
Understanding the Significance of China’s Interest-Free Loans Cancelation
By Oyintarelado Moses and Jyhjong Hwang On August 19, 2022, China announced it would waive 23 interest-free loans (IFLs) with maturity by the end of 2021 for 17 unspecified African countries worth an unspecified total amount. This announcement comes as ...
Sri Lanka Calls On Same Financial Advisory Firm That Worked With Zambia on Debt Restructuring
The Sri Lankan government hired the boutique Paris-based financial advisory firm Lazard to negotiate on its behalf with bilateral creditors in China, Japan, and India, among others. If that firm sounds familiar, it's because it's the same company that was brought in to help shepherd the Zambian government through its successful ...
Zambia is Going to Look Easy Compared to the Financial Mess in Sri Lanka
A broad cross-section of the international financial community is warning that Sri Lanka's major creditors must move quickly to restructure the country's debts or else full-scale economic collapse is inevitable. The latest warning signal came from the Hong Kong office of ...
IMF Visit Adds Pressure on China to Support Sri Lanka Debt Restructuring
A team from the International Monetary Fund is in Sri Lanka for the second time in three months to discuss debt restructuring amid calls for China to align itself with the country’s other creditors. Sri Lanka’s new President Ranil Wickremesinghe said: "We have ...
How Will the Debt Crisis Affect China’s Image as a Development Partner?
By Lukas Fiala As the debt crisis across the Global South accelerates, many commentators are weighing in on the drivers and implications of repayment difficulties and defaults. Unsurprisingly, as a major bilateral creditor to many governments across the developing world, China is ...
Sri Lanka Relents to Indian Pressure and Requests China to Defer Military Ship’s Arrival
Sri Lanka said on Monday it had asked China to defer the planned visit of a Chinese ship to the island country after initially approving its arrival this week, yielding to diplomatic pressure from neighbor India to keep the military vessel out.
How a Major Shift in Chinese Lending is Backfiring Across the Global South
Chinese lending is increasingly shifting from boosting development to helping indebted countries keep the lights on. This is now adding to debt distress across the developing world. AidData, a research group at the College of William and Mary focusing on Chinese lending, ...
After Zambia’s Successful Debt Restructuring, Sri Lankans Hope China Will Also Take the Lead to Help Resolve Their Crisis
Now that Zambia's Creditor Committee reached a landmark debt restructuring deal with its bilateral lenders, there's new optimism that the same will happen in Sri Lanka. The South Asian island state is ...
China Faces Twin Pressure From U.S., IMF Over Debt Crisis in Sri Lanka
The Chinese government is under mounting pressure from both the United States and the International Monetary Fund to do more to help resolve the worsening debt crisis in Sri Lanka. Colombo owes Beijing an estimated $6.5 billion, about 13% of the country's total public debt, ...