Sri Lanka weighs favoured creditor clause to speed up debt talks

Sri Lanka is pursuing pacts with commercial and bilateral lenders to meet the conditions for the IMF to disburse a US$2.9bil (RM13 bil) loan. - Reuters

COLUMBO: Sri Lanka is considering using a special clause to expedite its debt restructuring negotiations, according to people familiar with the matter, as prolonged talks risk delaying a crucial bailout from the International Monetary Fund (IMF).

The bankrupt nation is looking at introducing a “most-favored-nation” clause to assuage doubts among other creditors that China, which holds 52% of Sri Lanka’s bilateral debt, could be offered better terms.