A news agency in Japan has reported that there is a possibility that a group of countries that have given loans to Sri Lanka will reach an agreement on providing debt relief to Sri Lanka and extending the loan repayment periods.
The group is co-chaired by Japan, France and India.
China is Sri Lanka’s largest bilateral creditor but has avoided joining the group as a formal member.
However, the loan guarantee received after the agreement will help Sri Lanka to receive the second tranche of the International Monetary Fund.
With this latest situation, it is assumed that Sri Lanka will be able to receive 330 million US dollars as the second loan installment of the International Monetary Fund.