There is a possibility for Sri Lanka to obtain a new loan from China for the country’s debt restructuring purposes, Central Bank Governor Ajith Nivard Cabraal announced today.
He said the new loan will be obtained in order to cushion the effects of Sri Lanka’s debt repayments to China itself.
Cabraal said Sri Lanka has an understanding with China that they would assist the country in making the repayments.
The Governor said that this is something Sri Lanka wants to explore, and it would be used for the future as well.
Cabraal further said that the Government expects a 5.5% economic growth this year.
He reiterated that there was no truth to claims by some parties that Sri Lanka has become bankrupt.
Cabraal stressed that Sri Lanka is addressing its loan repayments and will honour its debts.
He went on to say that the Government has commenced focussing on adjusting its debt portfolios.
The Central Bank Governor added that the bank will announce by the end of March a new economic program for the next 9 months.
Cabraal made the observation when addressing a media briefing held at the Government Information Department today. (NewsWire)