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Chinese envoy seems to change tune on IMF

02 May 2022

  • Offers to fully support SL’s bid to secure IMF assistance
  • Said last week that IMF talks have affected Chinese assistance
Chinese Ambassador to Sri Lanka Qi Zhenhong yesterday (2) said that China is willing to offer its fullest support to Sri Lanka towards securing the assistance of the International Monetary Fund (IMF) to overcome the ongoing financial crisis. “As a major shareholder of the IMF, China is willing to play an active role in encouraging the IMF to positively consider Sri Lanka’s difficulties and reach a proper agreement as soon as possible,” Zhenhong added. Zhenhong made these remarks during a meeting with Minister of Finance Ali Sabry PC. These comments were in sharp contrast to Zhenhong’s statements last week, when he said that Sri Lanka approaching the International Monetary Fund (IMF) has had an impact on the ongoing discussion for $ 2.5 billion in assistance being sought by the Government of Sri Lanka, as well as future loans, stated Ambassador Qi Zhenhong. “The Sri Lankan Government going to the IMF has had an impact on the discussions,” the Chinese envoy told senior journalists on 25 April, adding that debt restructuring, which is an important fact in IMF negotiations, would have an impact on future loans from China. He added that both the governments of China and Sri Lanka were still engaged in discussions on the financial assistance package, which includes a $ 1 billion loan facility and a $ 1.5 billion line of credit. However, Zhenhong noted that China will closely watch the discussions between the Government of Sri Lanka and the IMF, and that countries that had sought IMF bailouts had faced strict conditions.


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