US says China needs to provide credible, specific assurances on debt restructuring to IMF

Thursday, 2 February 2023 02:10 - - {{hitsCtrl.values.hits}}

Visiting US Under Secretary Nuland gestures during her media conference yesterday at the Movenpick Hotel, Colombo – Pic by Sameera Wijesinghe

Visiting US Under Secretary Nuland says all major creditors working with IMF but China needs to do more
Assures US ready to do its part with Paris Club members
US wants IMF agreement in place as soon as possible to assist SL to overcome economic challenges
Underscores need to strengthen democracy and governance
Says proceeding with LG polls part of the process of strengthening democracy
Calls for national dialogue on reconciliation, reforming of PTA
Announces addition $ 30 m for school lunch program; brings total US support in past year to $ 240 m

By Chandani Kirinde

A visiting senior US State Department official said yesterday that China needs to provide more credible and specific assurances on its readiness to join other Sri Lanka creditors in meeting IMF standards on debt restructuring.

“All Sri Lanka’s major creditors have been working with the IMF. As the largest bilateral creditor, we expect China to provide credible and specific assurances regarding its readiness to join the rest of us in meeting IMF standards regarding debt restructuring,” Political Affairs Under Secretary Victoria Nuland said.

Nuland, who was on a brief visit, told journalists that the rest of Sri Lanka’s creditors were increasingly coming forward with assurances and now all eyes are on China to do the same.

“The US is prepared to do our part and our Paris Club partners are ready to do their part. India has made strong commitments it will provide the credible assurances that the IMF is looking for. What China has offered so far is not enough,” Nuland said in response to questions raised by journalists at the press briefing in Colombo.

She added that the US wants to see an IMF agreement in place as soon as possible to help Sri Lanka overcome the economic challenges it faces.

Nuland who met with President Ranil Wickremesinghe during her visit said that while the Government works to stabilise the economy and put Sri Lanka back on track to recovery and growth, strengthening democracy and governance too is vital.

This, she said, includes proceeding with the local Government elections scheduled for March thus giving people across the country a voice in their future.

“Last summer the Sri Lankan people made it clear their desire for a cleaner, more accountable Government and more prosperous and inclusive democracy. The US is proud to be Sri Lanka’s partner as you do the hard work to secure the future that all Sri Lankans deserve,” she said.

Nuland added that restarting the national dialogue on reconciliation and taking it forward so that it shows results for all Sri Lankans as well as reforming the Prevention of Terrorism Act (PTA) so that it meets international standards too are important.

The US official announced that the US will contribute $ 30 million to go towards school lunches for 96,000 students in 850 public schools bringing the total amount of US support in the past year to $ 240 million.

Nuland met with Foreign Minister Ali Sabry, representatives of minority political parties as well as a group of young climate activists and environmentalists during her visit.