According to an article published on Live Mint news, Chairman of India’s Export Credit Guarantee Corporation (ECGC) Limited Mr. M. Sendilnathan has stated that, it is likely for India to extend the time period given for repayment of the loan given to Sri Lanka by 12 years.
Sri Lanka currently finds itself indebted to various bilateral creditors, with a total debt of $7.1 billion. Among these creditors, China is owed $3 billion, the Paris Club is owed $2.4 billion, and India is owed $1.6 billion. As Sri Lanka continues its negotiations with the International Monetary Fund (IMF), discussions are underway regarding a restructuring package. This package will likely result in an extended repayment period, allowing Sri Lanka the necessary time to recover from its economic challenges.
According to Senthilnathan, the repayment period for India's debt may be extended from the originally agreed 3-4 years to a more manageable timeframe of 10-12 years. This extension will help ease the immediate financial burden on Sri Lanka, providing the necessary breathing room to navigate through its current crisis.