China Considering $2.5 Billion in Loans, Credit to Sri Lanka

  • Nation started talks with IMF for support amid FX shortage
  • India extended $1 billion facility for food, medicine imports
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China’s ambassador to Sri Lanka said his country is considering up to $2.5 billion in fresh assistance to the South Asian nation, the latest efforts to firm up finances as it struggles with a worsening economic crisis.

The development comes one week after Sri Lanka started talks with International Monetary Fund for a potential aid package as its foreign exchange reserves shrink and it struggles to import basic goods.