China provided $4.33 million debt forgiveness for government of Sri Lanka’s outstanding debt obligations

In April 2005, after the 2004 tsunami, the Chinese Government cancelled $4.33 million of the Government of Sri Lanka’s outstanding debt obligations (the transaction amount shown in the 2005 annual report of Sri Lanka Ministry of Finance and Planning). This action represented a partial rather than total write-off of the Government of Sri Lanka’s outstanding debt obligations to the Chinese Government.

Additional details

1. The Chinese name of the agreement is "中华人民共和国政府和斯里兰卡民主社会主义共和国政府关于免除斯里兰卡政府部分债务议定." 2. The loans forgiven through this action were almost certainly interest-free loans committed through previous ETCAs. As such, the loans likely had maturity lengths of 20 years and since they had reached maturity no later than 2005, they were almost certainly contracted prior to 2000. Therefore, AidData has not assigned this record to the umbrella category (as there is little risk of double counting the monetary value of the debts that were forgiven)."

Number of official sources

4

Number of total sources

5