Sri Lanka, China discusses loan from Beijing to cover debts

By KRISHAN FRANCIS
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s government says China does not want to restructure its loans to the island nation but is discussing making an additional loan to help with repayment of existing debts. Government spokesman Nalaka Godahewa said Beijing was balking at restructuring Sri Lanka’s debt because it does not want to set that precedent. Sri Lanka is on the brink of bankruptcy, with nearly $7 billion in foreign debt due for repayment this year. It owes $25 billion in foreign debt payments over the next five years. Sri Lanka earlier suspended foreign loan payments pending negotiations with the International Monetary Fund for a loan restructuring plan.