News > Sri Lanka downgraded as it eyes loan from China to service debt

Sri Lanka downgraded as it eyes loan from China to service debt

Sri Lanka sees the possibility of fresh lending by China to help meet its debt servicing obligations, central bank governor Ajith Nivard Cabraal said, as it faces looming maturities and a brewing balance of payments crisis.

"There's maybe a possibility of a new loan from China to cushion our debt repayments," Cabraal told reporters in Colombo without elaborating. "We have an understanding that they would assist us," he said.