Sri Lanka is seeking cheaper funding sources to replace its debt of billions with Chinese banks, reports Reuters.
Maithripala Sirisena’s new government is currently engaged in talks planning to replace 70 percent of its $5 billion debt with cheaper loans, unnamed finance ministry officials have said.
The Chinese embassy in Colombo said it was unaware of the government’s move to replace loans, adding that current loan terms between China and Sri Lanka were unnegotiable.
Sirisena’s new government has halted several Chinese funded infrastructure project proposals, and placed them under review, before any further continuation.
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