China to offer another loan to settle existing loans, says Sri Lanka's Cabinet Spokesperson

COLOMBO (News 1st); China has said it does not prefer debt restructuring, but is ready to offer another loan to settle existing loans, says Cabinet Spokesperson & Minister Nalaka Godahewa on Tuesday (26).

Addressing the weekly Cabinet Media Briefing said given the present crisis in Sri Lanka, the country needs around US $ 4 Billion to over come the crisis.

"China's position is that since it has offered loans to many countries, permitting debt restructuring for one country, it would affect the others. Therefore, they have proposed for another loan to settle the existing loans. This is in the preliminary stage, and the Finance Minister will make deliberations to parliament in due course," he said.