Sri Lanka is owed money to Japan, China, India, and the European Union . The IMF expects each creditor to be treated equally, which China would not accept .
The Island Online reports that Chinas inability to accept the proposed debt restructuring could rob Sri Lanka of the USD 2.9 billion credit facility of the International Monetary Funds (IMF), according to Dr Paikiasothy Saravanamuttu, Executive Director of the Centre of Policy Alternatives (CPA).At a workshop held in Kandy, Dr. Paikiasothy Saravanamuttu made the remarks.The staff-level deal will only be implemented after the countries in which Sri Lanka is owed can come to an agreement on how the debt must be restructured.Sri Lanka is owed money to Japan, China, India, and the European Union, according to Dr. Paikiasothy Saravanamuttu, the IMF expects each creditor to be treated equally, which China would not accept.According to the CPA Executive Director, the IMF will release USD 2.9 billion by January or February 2023 if China agrees to restructure debt.However, if Beijing doesn't fully commit to the proposed debt restructure, Sri Lanka will have to wait for the IMF's board meeting in March 2023.During this period, Sri Lanka would need USD 850 million to pay for basic needs, he said.Dr. Saravanamuttu said that the people of Sri Lanka should not blame the politicians for their country's difficulties because it is the people who have placed them there and given them the opportunity. According to The Island Nation poll, Dr Saravanamuttu, expressing views on the Sri Lankan demonstrations, said that various groups increased the demand for Rajapaksas to go home and return the money they stole from the region.He added that people have escaped the Rajapaksas, but that they don't have a clue how to recover the country's looted wealth or what kind of governance it should have, as stated in The Island Nation study.In addition, the UN team in Sri Lanka and non-governmental organizations updated and extended their joint Humanitarian Needs and Priorities (HNP) Plan on November 8, which aims to provide life-saving assistance to 3.4 million people in the midst of Sri Lanka's worst economic recession since independence.Since June, the Humanitarian Needs and Priorities (HNP) has been responding to the governments' call for UN-backed multi-sector assistance for Sri Lanka's debt and food and The HNP has collected USD 79 million for Sri Lanka, which has been matched by appeals from other UN agencies.