Sri Lanka leader says IMF deal imminent after China’s pledge

Sri Lanka’s president said Tuesday that China has given crucial debt restructuring assurances that mean the bankrupt Indian Ocean nation could get its $2.9 billion bailout package approved soon.
President Ranil Wickremesinghe told Parliament that a letter from China’s EXIM bank with the necessary assurances was received on Monday night and immediately he and the Central Bank governor sent a letter of intent to the International Monetary Fund for the final approval.
China owns about 10% of Sri Lanka’s foreign debt, which exceeds $51 billion. Its delayed assurances were seen as the last hurdle in securing the bailout deal after India and other creditors gave early pledges.
Wickremesinghe said he expects financial assistance from the World Bank and the Asian Development Bank to start coming soon after the IMF deal is reached.