China’s pursuit of greater IMF role creates complexity for debtor nations: President
Colombo (LNW): Sri Lanka President Ranil Wickremesinghe has highlighted the challenges posed by China’s distinct approach to the island nation’s debt treatment, during an interview with India’s FirstPost.
The President emphasised that Sri Lanka’s economic situation remains complex. Acknowledging China as the largest bilateral creditor to Sri Lanka, Wickremesinghe underscored that the primary creditors are the international sovereign bonds held by private entities.
He explained that negotiations with China are conducted separately, reflecting China’s dissatisfaction with the terms offered by the International Monetary Fund (IMF) and the World Bank. China seeks a more significant role in the IMF and has chosen to pursue a separate path, complicating matters for debtor nations, the President noted.
He clarified that the challenges arising from China’s independent stance are not unique to Sri Lanka but impact all nations grappling with debt. Wickremesinghe also characterised this situation as an issue to be addressed by major players on the international stage.
In essence, the Sri Lankan President conveyed that China’s actions signal a message to the IMF and other entities, leaving it to them to navigate and resolve the complexities arising from this distinctive approach.