Japan, Sri Lanka confirm importance of transparent debt restructuring


Japanese and Sri Lankan leaders on Thursday confirmed the importance of “transparent and fair” debt restructuring, apparently warning against China’s alleged debt-trap diplomacy, which uses loans as leverage to gain concessions from borrower nations.

The agreement came during a meeting in Tokyo between Japanese Prime Minister Fumio Kishida and Sri Lankan President Ranil Wickremesinghe, who expressed appreciation for the Asian country’s role in restructuring his nation’s debt.

Sri Lanka defaulted on its debt in April 2022 amid the worst economic crisis since the South Asian country, with a popu...

Kyodo News

Kyodo News