China assures Sri Lanka continued economic assistance

China has assured Sri Lanka continued economic assistance, hours after Central Bank Governor Ajith Nivard Cabraal said that Sri Lanka is negotiating another loan from China.

Foreign Ministry Spokesperson Wang Wenbin said that China and Sri Lanka have been showing each other mutual understanding and support, since the establishment of diplomatic ties.

“China has always been doing its utmost to provide help for Sri Lanka’s economic and social development and will continue to do so in the future,” the Chinese Foreign Ministry spokesperson said at a media briefing in Beijing.

His comments came in response to a question raised over Cabraal’s statement that Sri Lanka is negotiating another loan from China as part of attempts to restructure its debt repayment.

Cabraal said that the loan amount has not yet been decided.

However, he said the matter is being discussed and Sri Lanka hopes to reach an agreement with China at the earliest.

“There is a possibility that we would have a new loan coming from China in order to cushion the effects of our debt repayments to China itself,” the Governor had said.

He emphasised that the new loan will be sought to cushion debt repayments to China.

The Governor also said that Sri Lanka is negotiating a USD 1 billion facility with India to import goods from India.

Cabraal said that this will also help Sri Lanka in its debt repayment and promote more trade with the respective countries. (Colombo Gazette)

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