Cabraal says Sri Lanka’s debts mainly to Western countries, int’l finance institutions

Sri Lanka
By Editor_1
newsfirst.lk
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COLOMBO – Sri Lanka’s debts were mainly to Western countries and international finance institutions, and debts to China were “extremely well manageable,” a Sri Lankan official said in an article published Saturday (4).

“This myth that Sri Lanka is in a debt trap because of borrowing from China is not true,” Sri Lanka’s State Minister of Finance, Capital Markets and State Enterprise Reform Ajith Nivard Cabraal was cited in a State-owned English Language daily as saying.

“The debts we have taken from Japan are larger than those from China. So are all other debts such as the ones we have obtained from the World Bank. Our debts on international sovereign bonds are larger than what we have obtained from China. Those debts are from American, European and Asian investors,” he said.

The debts to China have been taken out for very reasonable rates, sometimes much less costly than some debts Sri Lanka has incurred from international sovereign bonds, said Cabraal, adding that the loans from China are all long term, very well managed and paid on time.

Cabraal added that the government is confident that the country will not default on its obligations and promised to continue the good reputation it has maintained up to date on meeting debt requirements.

– Xinhua

 

Editor_1
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