Beijing is considering a request for another $2.5 billion loan package from crisis-hit Sri Lanka, China’s ambassador said, as a man was stabbed to death while queuing at a fuel station. The island nation of 22 million people is in the throes of its worst economic meltdown, with widespread shortages of essential goods and worries that it may default on its $51 billion in foreign debt. Qi Zhenhong announced that loan discussions were at an advanced stage, but stopped short of saying whether Beijing would agree to a separate request from Colombo to restructure its debt.
“China understands the urgent need of Sri Lanka and its people,” Qi told reporters in Colombo. “Relevant authorities in China are promptly studying the request.” He said Colombo had asked for a $1 billion loan and another $1.5 billion credit line to import goods from China, because the country has virtually run out of dollars to import goods. – AFP