Crisis-hit Sri Lanka cannot use $1.5-bn China help on IMF concerns

Bankrupt Sri Lanka can’t tap a $1.5 billion credit line from Beijing as China is concerned the International Monetary Fund may force delays in repayment. 

“There is a condition in relation to the months of import cover that we need to have in order to be able to draw on that money,” said Indrajit Coomaraswamy, a former central bank of Sri Lanka governor who is advising the government. 

It’s difficult for China to waive off the condition “because this is a three-year swap, it might be termed a loan and there may be pressure from IMF and others to include it in the stock of debt that we reschedule and therefore clearly that would be a disadvantage to the Chinese,” he said. 

India — creditor and neighbour to Sri Lanka — wants the IMF to treat China on par with other creditors.

Top leaders reach consensus on 21A provisions
 
Sri Lanka's top political leaders on Friday agreed on some of the provisions of the controversial 21st Amendment to the Constitution aimed at empowering Parliament over the executive president during the second round of meeting with Prime Minister Ranil Wickremesinghe (PTI).