After India, China gives financing assurances to Sri Lanka for IMF bailout package

The Sunday Times newspaper reported that China’s Exim Bank delivered a letter granting Sri Lanka a two-year moratorium on repayment and agreeing with the IMF’s extended fund facility

China has given debt-ridden Sri Lanka the financing assurances required by the IMF to unlock a $2.9 billion bailout package for the country, days after India strongly backed the island nation's efforts to secure the loan from the global lender to recover from its worst-ever economic crisis.

The Sunday Times newspaper reported that China’s Exim Bank delivered a letter on Saturday granting Sri Lanka a two-year moratorium on repayment and agreeing with the International Monetary Fund's extended fund facility (EFF).

The report was confirmed by Sri Lankan officials who did not want to be named.

Also read: Sri Lanka awaiting assurances from India, China, says Central Bank Governor 

The Chinese response came close on the heels of India stepping in first to issue the necessary assurances last week.

India’s ministry of finance last week issued a letter to the IMF to confirm its support to Sri Lanka on the issue of debt restructuring, ahead of the visit by the external affairs minister S. Jaishankar to Colombo which concluded on Friday.

Mr. Jaishankar during his visit also announced that India has given the required assurances to Sri Lanka for the bailout package.