Sri Lanka is close to finalizing talks with its lenders, led by Japan, to halt debt payments until 2028.
The repayment timeline is set to be prolonged from 2028 to 2042, with a reduced interest rate of around 2%. While Sri Lanka has requested more debt relief, Nikkei Asia states that there are no plans for further reductions.
China, as the main lender, is involved as an observer. Nevertheless, its debt restructuring terms are likely to match those established with other lenders.