China will agree to $ 4 billion in aid to Sri Lanka ‘at some point’ – Bloomberg News

July 15 (Reuters) – Sri Lanka continues negotiations with China for as much as $ 4 billion in aid and is confident that Beijing will agree “at some point,” Bloomberg News reported Friday, citing Sri Lanka’s ambassador in China.

Colombo is asking China for a $ 1 billion loan to repay a similar amount of Chinese debt due this year, Palitha Kohona said in an interview with Bloomberg.

Sri Lanka is also seeking a $ 1.5 billion credit limit to pay for Chinese imports and activating a $ 1.5 billion swap, Kohona added. (https://bloom.bg/3RBQoub)

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“We are confident that the Chinese system will at some point accept our requests because these are not unreasonable requests,” Kohona was quoted as saying.

“We have made similar requests to other creditors. Sri Lanka needs the funding to bring stability to our financial system and we are confident that the Chinese will come to the party sooner rather than later,” he added.

(History corrects to add the lost word ‘Sri Lanka’ to the headline)

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Reporting by Akriti Sharma in Bengaluru Editing by Raissa Kasolowsky

Our standards: Thomson Reuters Trust Principles.

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