Sri Lanka could have prevented bankruptcy if the authorities had handed over the nation’s debt to China, which is an existing debt restructuring model, former Minister Wimal Weerawansa stated.
Speaking during a television talk show, MP Wimal Weerawansa said this move would have allowed Sri Lanka to overcome its economic crisis.
“There is a debt restructuring model under which countries in debt can hand over the debt to China and China in return will pay the creditors. The country in debt on the other hand will repay China under a low-interest loan for a 20-year period in exchange,” MP Weerawansa explained.
He further alleged that, however, the authorities failed to do so and had announced Sri Lank was bankrupt even without consulting or informing its creditors, resulting in the economic crisis. (NewsWire)
Without bankrupting the country, we could have overcome this economic crisis by giving our debt to China – MP Wimal Weerawansa says. Did Sri Lanka have this option? @dhananath @anushwij @ChayuDamsinghe @HarshadeSilvaMP pic.twitter.com/fQlWx0Bx5q
— Manjula Basnayake (@BasnayakeM) April 9, 2023
