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00:00How is this relationship right now and how will it be affected by change of government in your view. In my view I don't think going to be a substantial change because the relationship between the two countries is a very deep seated relationship. It's not based on political parties which run the country. It's not based on convenience. I believe that the relationship will withstand whatever changes take place in Colombo. In fact no one has of now indicated that there will be any change at the Colombo in China. China is a close friend and we will maintain that relationship as it has always been close. And one relationship. Well Ambassador on the one side we've got Colombo negotiating with the IMF and the other is of course that debt restructuring and talks taking place with the Beijing as well. How are those restructuring talks faring right now. You have to there are two or three factors that you have to take into account here. Sri Lanka's because pretty sure it is not Beijing. So only about 10 percent of our external debt is owed to China. The rest is owed to say countries like Japan. International institutions like the Asian Development Bank the World Bank and also commercial lenders. So China's the debt owed to China is only about 10 percent. A billion dollars of that debt is falling due for a payment this year. And they've asked China to extend as a loan made those payments. These discussions are continuing between the central bank from Sri Lanka and the authorities of China. We have also asked China to extend as a loan of one point five billion to pay for purchases from China. It would be good to purchase a credit arrangement. In addition there is also a sovereign arrangement already negotiated which needs to be activated. So these are these these three different avenues that we are looking at and from a financial perspective. Ambassador give us a sense of what's been agreed on when. What are the two sides really asking for. You elaborated on what Sri Lanka is is asked for. What's China asking for. China has been very sympathetic. We've been talking to China especially my office has been in continuous discussion with the Chinese. We are confident that at some point the Chinese system will agree to our requests because these are not unreasonable requests. We made similar requests from other villages. Sri Lanka needs to funding to bring stability to our financial system. And we have to be confident that the Chinese come into the party sooner than later. Is China willing to let Sri Lanka use the one billion dollar swap line from the PBOC. I'm sorry I can't hear you. Is China willing to let Sri Lanka use the one and half billion dollar swap line from the PBOC. Though there are things that lady have been discussed which I cannot discuss it in public. But as things stand this swap arrangement is not being given an assurance that you do not be covered by any arrangement. We come to in the global arena especially in our discussions with the IMF. I believe that that is correct. That's correct approach to take. Our financial authorities in Colombo have indicated that this will not fall under any other arrangement we agreed to eventually. Ambassador a quick question here about how do you see the Sri Lanka China relationship evolving since of course the president Gotobaya Rajapaksa left the country. Will there be more of an interest and more of a perhaps a lean pivot towards India in your opinion. What do you think is going to happen. That's a very important question because our relationship with India is not dependent on our relationship with China. India is a close neighbor and a very vital neighbor. It has been a friend for a long time. And even in recent months India has come to our assistance very enthusiastically. India is extending credit to Sri Lanka and granting to Sri Lanka in total which approximates almost three billion dollars. This is in recent months. China also is a very close friend and we had very warm and proximate relations with China. I don't think one relationship depends on it on the other or there is a need to shift from one relationship to the other. Both are important to Sri Lanka and they even maintain close relationships in the current form. Ambassador very quickly here with the departure of the president we probably got a new line head from which Sri Lanka can perhaps move on politically arguably then economically. Are you confident in the future now that the president has gone. The president has gone but over the next few weeks we will decide on a successor to the president to his left. Discussions are going on. Negotiations are going on in Colombo between among the interested parties. And I'm confident as you said that somehow somebody will emerge as the leader as the successor president. And also there are constitutional provisions that need to be complied with. So at the end of the day here Sri Lanka Villi will emerge from this crisis. We have emerged from some bigger crises in the past we have a 27 year long internal conflict emerged from that. In fact we came on Stronger Island. I'm very confident that from this crisis also we believe that it is to be remembered that what we've been through is a popular uprising a popular expression of disenchantment. The people have expressed themselves and the belief amongst all those people is that the they will be able to put pressure on all of the aspirants so that somebody who is capable of leading the country out of the present situation will emerge from that. Ambassador thank you so much. If if I had to mention very very quickly in 10 seconds you plan to go back to Sri Lanka and perhaps help a national government there very very quickly as a minister. Sorry could you repeat that. Do you have any plans to go back to Sri Lanka to take part in rebuilding the country as a minister. It's an interesting question but I'm a public servant and I will continue to discharge my duties on behalf of the country in accordance with these instructions I get from the Cabinet.

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Kohona on Sri Lanka's Debt Restructuring Plan With China

Sri Lankan Ambassador to China Palitha Kohona discusses how his country's debt restructuring talks are progressing with China. He speaks with Bloomberg's Rishaad Salamat and Haslinda Amin on "Bloomberg Markets: Asia." (Source: Bloomberg)

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