Report reveals how much money China lost on account of Sri Lanka's debt restructuring

China has incurred a loss of $7 billion due to Sri Lanka's external debt restructuring, news agency PTI reported citing a media report on March 10. In the report, China's state-owned Daily News quoted Chinese Ambassador to Colombo, Qi Zhenhong, as saying that China was the first bilateral creditor to enter into a restructuring agreement with Sri Lanka in October 2023.

Ambassador Qi noted that the public is largely unaware of these details. "This is because we do not shout about our assistance to Sri Lanka," the ambassador noted.

It may be noted here that Sri Lanka undertook a restructuring of $46 billion in external credit after announcing its first sovereign default amid the economic crisis of 2022.

Furthermore, the ambassador expressed optimism about the potential for collaboration between China and India in developing Sri Lanka's northern province.

In a significant statement, Qi said there is no dispute between China and India, as both nations have experienced rapid growth and should collaborate to achieve common objectives.

"I hope China, India, and Sri Lanka can work together one day to implement a viable project here," he added.