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Chinese debt trap is a myth: Cabraal

It is a myth that Sri Lanka is in a debt trap caused in consequence of borrowing from China, State Minister of Money and Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal said.

He made these statements while speaking on the state of the economy at a special media briefing held yesterday (03).

The State Minister reassured that any allegations of the country being stuck in a Chinese debt trap is “pure rubbish”.

Cabraal noted that Sri Lanka’s debt to China is extremely well-managed and the country is not under pressure from Chinese debt, dismissing the speculations and assuring all creditors that debts will be paid on time.

“If people were to look at the debt profile of Sri Lanka as well as the debt servicing cost, they would realize that the country has the ability to repay and that no lender can control Sri Lanka’s way forward,” he said further.