China Backs Sri Lanka Debt Plan, Paving Way for IMF Loan

(Bloomberg) — China gave assurances that it will support Sri Lanka’s debt restructuring, potentially clearing the biggest hurdle for the South Asian nation to secure a $2.9 billion bailout from the International Monetary Fund.

Sri Lanka expects IMF board approval by the end of the month after China, its largest bilateral creditor, gave written support March 6 for the debt restructuring via the Export-Import Bank of China, President Ranil Wickremesinghe told parliament Tuesday. Authorities signed the letter of intent for the IMF loan Monday, he said.