China Agrees to Restructure $4.2 Billion of Sri Lanka Debt

(Bloomberg) — China agreed to restructure $4.2 billion of Sri Lanka debt, putting the South Asian nation closer to securing more funds from the International Monetary Fund.

The agreement reached “on the key principles and indicative terms of a debt treatment” constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and economic recovery, the nation’s finance ministry said late Wednesday in a statement.