China backs Sri Lanka’s debt restructuring for $2.9bn IMF bailout

Janet Yellen expresses support to Sri Lanka’s plans toward getting approval for crucuial IMF loan

File Sri Lanka's President Ranil Wickremesinghe (2L) arrives for the opening session of the parliament in Colombo (AFP via Getty Images)

Sri Lanka is awaiting a final approval from the International Monetary Fund for a bailout package after China gave crucial assurances to support Colombo’s debt restructuring, the president said.

China’s EXIM bank sent the delayed assurance that it will support Sri Lanka’s debt restructuring which was seen as the last hurdle in securing the bailout deal after India and other creditors gave early pledges.

It has paved the way for IMF’s approval to $2.9bn bailout package by the end of this month and is expected to unlock more funding from other financial agencies.