Sri Lanka has had fruitful talks with India on debt restructuring and will begin negotiations with China in 2022, says President Ranil Wickremesinghe . Sri Lanka has almost declared bankruptcy and defaulted on all foreign loans .
Sri Lanka, which is starving to money from the International Monetary Fund (IMF), has had fruitful talks with India on debt restructuring and will begin negotiations with China, according to President Ranil Wickremesinghe, as the island country scrambles to get promises from major bilateral creditors, China, Japan, and India, that is vital for Colombo to secure the bailout package.Ranil Wickremesinghe, a spokesperson for China, said that it had had excellent talks with India and will begin talks with China in 2022, according to the EconomyNext news portal.China has said that although the IMF wants to reduce debt to Sri Lanka, other countries under restructuring have levels of around 51%, some less.We also hope that relevant countries and international financial organizations collaborate with China to help Sri Lanka recover from its current crisis, which has almost declared bankruptcy and defaulted on all foreign loans, according to her.Sri Lanka, a country of 22 million inhabitants, has been in financial and political turmoil earlier this year, when it could no longer afford essential imports such as fuel, fertilisers, and medicine, leading to serpentine queues.