Paris Club approaches China and India

Financial trouble: People walk past the main entrance of Sri Lanka’s central bank in Colombo. Sri Lanka defaulted for the first time in May and aims to finalise debt-restructuring talks with international creditors by the second quarter of 2023. — Reuters

WASHINGTON: Paris Club creditors reached out to China and India to coordinate Sri Lanka’s debt-restructuring talks, according to a person familiar with the matter, in an attempt to bring major global creditors together to rework the obligations of emerging economies.

The club, an informal group of mostly rich, western bilateral creditors, is awaiting a response from both countries after it sent an official request in late August to work together, said an official who declined to be identified because talks are continuing.