Japan is Ready to Coordinate with Creditors
Japan will coordinate with other creditors to resolve Sri Lanka’s deepening financial crisis, Finance Minister Shunichi Suzuki said on Tuesday, urging all creditor nations to gather and discuss the South Asian nation’s debt at the same table.
“We are concerned about Sri Lanka’s severe socio-economic situation,” Suzuki quoted by Reuters.
Sri Lanka must accelerate talks with the International Monetary Fund (IMF) on a bailout, while all bilateral creditors, including China and India, must gather to discuss the issue, Suzuki said.
“Japan wants to actively cooperate with other creditor countries and public organisations.”
Japan is seeking to organise an all creditors’ conference, hoping it could help solve Sri Lanka’s debt crisis, and it is open to hosting such talks possibly with China, sources with knowledge of the situation told Reuters last week.
It remains unclear whether top creditor China would join and a lack of clarity remains about Sri Lanka’s finances, one source told Reuters.
President Ranil Wickremesinghe told Reuters this month that Sri Lanka would ask Japan to invite the main creditor nations to talks on restructuring bilateral debts. He said he would discuss the issue with Prime Minister Fumio Kishida in Tokyo next month.