China Backs Sri Lanka….

The largest obstacle in Sri Lanka’s path to an IMF bailout of $2.9 billion has been removed by China’s guarantees that it will back the country’s debt restructuring.

According to persons with knowledge of the matter who declined to be named because the details are private, Sri Lanka’s largest bilateral creditor provided written support for the debt restructure via the Export-Import Bank of China on March 6. The people claimed that the letter complies with IMF regulations.

Requests for comment were not immediately returned by China Eximbank. Calls for confirmation have gone unanswered by the office of Ranil Wickremesinghe, the president and finance minister of Sri Lanka. Calls to Governor Nandalal Weerasinghe’s mobile phone have gone unanswered.