Sri Lanka has begun debt restructuring talks with China that will test whether Beijing and rival lenders such as India can put aside their differences to help the island escape its economic crisis.
“We are sure that China will assist us in these difficult times,” Sri Lanka’s president Ranil Wickremesinghe said in parliament on Thursday as he announced the launch of talks with Beijing. “It is our expectation now to come to a common agreement as soon as possible.”
Crisis-hit Colombo’s negotiations with its creditors have become a barometer of how lenders respond to rising global debt distress, with Beijing’s role drawing particular international scrutiny.
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