Bloomberg reported on April 12 that Sri Lankan ambassador Palitha Kohona felt very confident about 2.5 billion dollar credit support from China to help his nation get through the spiraling economic crisis.

Sri Lanka’s top diplomat said he had received reassurances last week from the Chinese government that procedures for loans and credit lines are progressing.

He added that the crisis-hit nation is seeking a one-billion-dollar loan from China to repay current Chinese debts due in July. At the same time, it is asking for a 1.5-billion-dollar credit line to buy commodities from the world’s second-largest economy, such as textiles, to assist the garment export industry.

China has long enjoyed warm ties with Sri Lanka but has yet to provide the island nation with a much-needed lifeline.

According to Kohana, President Gotabaya Rajapaksa had recently written to President Xi Jinping to request financial support. Besides, Sri Lankan officials are still urging Beijing to resolve the situation as soon as possible.

Kohana stated, “Given the current circumstances, there aren’t that many countries that can step out to the pitch and do something.”

He added, “China is one of those countries that can do something very quickly.”

Moreover, Kohana believes that Sri Lanka’s request “will be honored,” and these two financial aids will be made accessible to his nation.

The South Asian country has also requested China’s assistance in purchasing goods such as fuel that it was managing to secure due to its foreign-currency shortage. The ambassador expressed doubts about China’s ability to provide such assistance, given that it is a net importer of such commodities.

Separately, Sri Lankan officials will meet with International Monetary Fund counterparts later this week. They would work out the terms of a potential financing package to assist the country to fulfill its 8.6 billion dollar debt payment due this year. Kohana expressed optimism that he would be able to get Chinese backing, which would improve its chances to reach a deal closing.

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