China has not done enough on Sri Lanka debt restructuring: US diplomat

US Under Secretary of State for Political Affairs Victoria Nuland during her visit to Sri Lanka has said that the terms extended by China to Sri Lanka are not enough. She said that US wants to see an IMF agreement for Sri Lanka at the earliest.

Making her remarks to the press, she said US expects China, as the largest bilateral creditor, to give credible and specific assurance that matches IMFs standard on debt restructuring.

Sri Lanka has been facing its worst ever economic crisis since its independence in 1948. India had extended an unprecedented assistance of 4 billion dollars to the island nation to meet its essential requirements of food, fuel, fertiliser and medicines.

Sri Lanka has been making efforts to unlock a 2.9 billion dollar extended fund facility from the IMF, which requires that the creditors provide financing assurances. So far, India has been the only bilateral creditor to have given financing assurances in line with IMF’s package.