Crisis-hit Sri Lanka asks China to restructure its debt

Crisis-hit Sri Lanka asks China to restructure its debt

COLOMBO — The president of crisis-hit Sri Lanka has asked China to restructure its debt repayments as part of efforts to help the South Asian country navigate its worsening financial situation, BBC reported. Gotabaya Rajapaksa made the request during a meeting with Chinese foreign minister Wang Yi on Sunday. In the last decade China has lent Sri Lanka over $5bn (£3.7bn) for projects including roads, an airport and ports. But critics say the money was used for unnecessary schemes with low returns. "The president pointed out that it would be a great relief to the country if attention could be paid on restructuring the debt repayments as a solution to the economic crisis that has arisen in the face of the Covid-19 pandemic," Rajapaksa's office said. The statement also said China was asked to provide "concessional" terms for its exports to Sri Lanka, which amounted to around $3.5bn last year, without providing further details. Rajapaksa also offered to allow Chinese tourists to return to Sri Lanka provided they adhere to strict coronavirus regulations. Before the pandemic, China was one of Sri Lanka's main sources of tourists. And it imports more goods from China than from any other country. In recent