China assures it's backing to Sri Lanka's debt restructuring process

COLOMBO (News1st) - China has given assurances that it will support Sri Lanka’s debt restructuring, clearing the biggest hurdle for the South Asian nation to secure a $2.9 billion bailout from the International Monetary Fund.

According to Bloomberg Sri Lanka’s largest bilateral creditor gave written support for the debt restructuring via the Export-Import Bank of China on March 6. 

Bloomeberg quoted people familiar with the situation as saying the letter meets the requirements of the IMF.

China’s backing completes the support Sri Lanka needs from creditor nations to allow the IMF board to approve the loan that was agreed upon by the Fund staff in September.