China's $7 Billion Setback in Sri Lanka's Debt Restructuring

China faces a $7 billion loss due to Sri Lanka's debt restructuring, according to reports. Chinese Ambassador Qi Zhenhong emphasized China's role as the first bilateral creditor in the agreement. While expressing goodwill, the ambassador hopes for a collaborative future involving China, India, and Sri Lanka.

China is experiencing significant financial setbacks, with a reported $7 billion loss from Sri Lanka's external debt restructuring efforts. This information surfaced in a media report on Tuesday, as Chinese Ambassador to Colombo, Qi Zhenhong, addressed the issue.

The ambassador pointed out that China was the first bilateral creditor to sign a restructuring agreement with Sri Lanka in October 2023. He remarked on the lack of public awareness regarding these financial commitments, explaining that China does not typically publicize its international assistance.

The ambassador also conveyed optimism about future cooperation, suggesting that China, India, and Sri Lanka could collaborate on development projects, particularly in Sri Lanka's northern region. This sentiment comes amid historical tensions but highlights a desire for regional unity and shared economic advancement.

(With inputs from agencies.)