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。    Colombo, Oct 18 (UNI) Japan is working to organize a meeting of Sri Lanka’s creditors by the end of this year in hopes of solving that country’s debt crisis.
The Daily Mirror quoted the Yomiuri Shimbun as saying that the meeting, which will discuss such issues as finding ways to reduce debt payments, aims to curb China’s influence by helping Sri Lanka cope with its so-called debt traps.
The debt traps arose after China provided huge loans to the country to fund infrastructure developments and other projects, it said.
Sri Lankan President Ranil Wickremesinghe asked Tokyo for help during talks with Prime Minister Fumio Kishida and others during a visit to Japan in September to attend the funeral of former Prime Minister Shinzo Abe.
The meeting is expected to focus on measures to reduce debt payments and postpone repayment deadlines, among other related steps. Japan continues to urge other creditor countries to play a proactive role in dealing with the issue.
According to the Sri Lankan government, the nation’s external debt at the end of June stood at $46.6 billion, accounting for about 70 per cent of its gross domestic product.
Sri Lanka has more than 20 creditors, with China topping the list at $7.3 billion, followed by Japan at $2.7 billion and India at $1.7 billion.
China — which has come under criticism from the international community for causing Sri Lanka’s economic collapse — will not play a leading role in restructuring Sri Lanka’s debts.
The Japanese government will have to tread carefully in its efforts to reach agreement among creditors in a manner acceptable to Beijing.
UNI MR。

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Published on:03:34:58