Ranil in China as Sri Lanka hopes to restructure $8 billion of debt
Sri Lankan Prime Minister Ranil Wickremesinghe held talks with Chinese Premier Li Keqian on Thursday, as Sri Lanka looked to restructure $8 billion worth of debt to China amidst a worsening debt crisis on the island.
As the two met in Beijing and signed seven different agreements, Sri Lanka’s Deputy Minister of State Enterprise Eran Wickramaratna told PTI that Sri Lanka was “looking to swap debt to equity”.
Mr Wickremesinghe was also looking to negotiate the terms of a $125 million compensation package demanded by the Chinese following delays in the Colombo Port City project.
The state owned China Communications Construction Company (CCCC) said delays in construction, which was put on hold once the current Sri Lankan government came into power last year, had cost more than $380,000 a day.
Sri Lanka’s Minister of Megalopolis and Western Development Patali Champika Ranawaka told The Wire that his government would look to strategies such as rescheduling payments, admitting, “We can’t pay, we are going to negotiate”.
As the two met in Beijing and signed seven different agreements, Sri Lanka’s Deputy Minister of State Enterprise Eran Wickramaratna told PTI that Sri Lanka was “looking to swap debt to equity”.
Mr Wickremesinghe was also looking to negotiate the terms of a $125 million compensation package demanded by the Chinese following delays in the Colombo Port City project.
The state owned China Communications Construction Company (CCCC) said delays in construction, which was put on hold once the current Sri Lankan government came into power last year, had cost more than $380,000 a day.
Sri Lanka’s Minister of Megalopolis and Western Development Patali Champika Ranawaka told The Wire that his government would look to strategies such as rescheduling payments, admitting, “We can’t pay, we are going to negotiate”.
