These Countries are Important for Restructuring of Foreign debt of Sri-Lanka

(The Quiver): In order to successfully call a meeting of creditors to restructure their debt in order to deal with an unprecedented economic crisis, Sri Lanka will need the support of India and China.

Japan was contacted by Sri Lanka to assist in setting up a meeting of what is being referred to as a “coordinating platform” to lower debt payments and modify payback timelines. In that sequence, China and India must attend the summit due to their significant position as creditors, which Japan has in turn expressed to Sri Lanka.

India provided $3.8 billion in emergency aid, including lines of credit for fuel, food, and medication purchases, a currency exchange, and the postponement of debt repayments.

When visiting Tokyo last month to attend the funeral of former prime minister Shinzo Abe, Sri Lankan President Ranil Wickremesinghe met Prime Minister Fumio Kishida and asked for assistance from Japan to organise the conference of creditors.

According to Sources, as the end of June, the nation owed $46.6 billion in foreign debt, or about 70% of its GDP.

China is the largest creditor of Sri Lanka, holding 10% of the country’s $7.3 billion in total international debt, including loans from the Export-Import Bank of China and the Asian Infrastructure Investment Bank. India has $1.7 billion and Japan $2.7 billion in assets.