International Monetary Fund Chief Kristalina Georgieva has called on China to speed up the restructuring of Sri Lankan debt. In a statement released after the 7th 16 (one plus six) roundtable in China, Ms. Georgieva said that there is a need to accelerate and finalize the debt treatments for Sri Lanka, which would allow for disbursements from the IMF. China is a top lender to Sri Lanka along with Japan, the Asian Development Bank and India.
Meanwhile, China has informed Sri Lanka that they will also hold bilateral discussions with the IMF and World Bank.
As per a recent report, China held 19.6 percent of the Sri Lankan debt as of the end of 2021. Some of China’s infrastructure loans have also been questioned for lack of proper feasibility plans including Lotus tower, Hambantota port and an airport that has largely remained unused.
Earlier this year, Sri Lanka had suspended repayments on its international debt due to the economic crisis. The forex reserves in the island nation had plummeted resulting in acute shortages in fuel, food and medicines.