China has decided not to join the official creditors’ platform negotiating a debt treatment plan with Sri Lanka. Despite not being part of the platform, Beijing is attending the meetings as an observer and has given Colombo assurances of bilateral support to the island’s economic recovery. Foreign Minister Ali Sabry said that the terms of the debt treatment, regardless of whether China joins the creditors’ committee or negotiates bilaterally, will be comparable.

He added that China’s debt to Sri Lanka is threefold, including loans from the Chinese government, the Exim Bank of China, and the China Development Bank. Sri Lanka is under pressure to restructure its foreign and domestic debt before September, when the International Monetary Fund (IMF) is set for its first review. The government has approved a plan to restructure domestic debt, by recasting pension funds, but this has sparked criticism from the political opposition and government critics.

Minister Sabry has assured that all external debt treatment will be comparable, and that no side arrangements inconsistent with comparability of treatment will be made with any creditor. Despite the pressure, Colombo is confident that China's bilateral support will help Sri Lanka's economic recovery.