Industry calls for Indian and Chinese debt to be rebased in lender currency

To make the debt negotiations between Sri Lanka’s major lenders more equitable it has been suggested by various associations that US dollar-denominated debt to India and China be redenominated in Indian Rupees and Chinese Renminbi.

They also noted that the two lenders were looking to offer debt moratoriums as opposed to debt write-downs. By changing the denomination of the debt and further issuing credit lines in their currencies the two lending nations can effectively roll over debt and build important currency relations that will facilitate the deepening of relations. (TP)