Muristek
New Delhi, April 12
Sri Lanka on Tuesday announced that it would be temporarily unable to pay its debts till it works out a bailout package with the IMF.
The ban will apply to all international bonds, bilateral loans and loans with commercial banks and institutional lenders, said the Sri Lanka Finance Ministry. While India has offered aid totalling over $2.5 billion that has led to a steady flow of diesel, rice and medicines to Sri Lanka, Beijing is yet to act on Colombo's request for $2.5 billion assistance as well as rescheduling of debt. Though China seems to have accepted Pakistan's request to rollover $4.2 billion in debt repayment, it did not give a firm commitment to Sri Lanka on Tuesday.
"Since the establishment of diplomatic ties between China and Sri Lanka, the two countries have lent mutual support and understanding to each other. China has been doing its utmost to provide assistance for the socio-economic development of SL," said the ministry spokesperson. —