China left out of Sri Lanka debt talks amid angst over delays
Sri Lanka and major creditors are set to formally launch talks to restructure the nation’s debt without China — its biggest bilateral lender — a signal of growing frustration with Beijing’s approach to debt woes in the developing world.
India, Japan and the Paris Club of sovereign creditors are making public statements Thursday evening in Washington to mark the start of the restructuring.
The event aims to inject new momentum into Sri Lankan debt talks caught in a standoff between China and other lenders over how best to deal with the island nation’s debt problems, people familiar with the matter said. They declined to be identified because the talks are private.
It comes a day after China agreed to soften some of its demands during a roundtable convened by the International Monetary Fund and World Bank to hammer out broader guidelines for providing debt relief to low-income countries. Those discussions are due to continue in the months ahead, with significant issues still unresolved.
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