COLOMBO The United States wants China to give more credible and specific assurances to the International Monetary Fund IMF, along with other creditors, to help Sri Lanka unlock a $2.9 billion bailout, a senior U.S. diplomat said on Wednesday.
Sri Lanka entered into a staff level agreement with the global lender last September, but needs assurances from key bilateral lenders China and Japan before disbursements can begin.
India, the third major lender, sent its financing assurances to the IMF last month.
What China has offered so far is not enough. We need to see credible and specific assurances that they will meet the IMF's standard of debt relief, U.S. Under Secretary of State for Political Affairs Victoria Nuland spoke to reporters.
We, the United States, are prepared to do our part. Our partners at the Paris Club are prepared to do their part. India has made strong commitments that it will give the assurances that the IMF is looking for. The Export-Import Bank of China offered Sri Lanka a two-year moratorium on its debt and said it would support the country's efforts to secure an IMF program.
Sri Lanka, an island of 22 million people, is in a worst financial crisis since independence from Britain in 1948, with a surge in inflation, a recession and currency depreciation over the last year.
We want to see an IMF program as soon as possible. That is what Sri Lanka needs, that is what Sri Lanka needs, Nuland said.