China has declined Sri Lanka's request to convert into equity the loans funding projects including the Mattala airport and Hambantota port.
Chinese ambassador Yi Xianling has told the Sri Lankan prime minister that such a transfer wasn't possible within Chinese laws.
However Mr Xianling has said that his government is willing to cooperate with and support Sri Lanka in overcoming its financial issues.
Read more on the Sunday Times.
Sri Lanka is one of the most dangerous places in the world to be a journalist. Tamil journalists are particularly at threat, with at least 41 media workers known to have been killed by the Sri Lankan state or its paramilitaries during and after the armed conflict.
Despite the risks, our team on the ground remain committed to providing detailed and accurate reporting of developments in the Tamil homeland, across the island and around the world, as well as providing expert analysis and insight from the Tamil point of view
We need your support in keeping our journalism going. Support our work today.