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Interview

Sri Lanka has foreign lenders' interests 'at heart': central bank

Gov. Cabraal favors creditors over vital imports, ramping up debt diplomacy

Central Bank of Sri Lanka Gov. Nivard Cabraal said in an interview with Nikkei Asia that his nation has "never discussed debt relief with any country." (Photo courtesy of Central Bank of Sri Lanka)

COLOMBO -- Even as Sri Lanka teeters on the brink of bankruptcy, the government is determined to pay foreign creditors and delay a return to global capital markets as part of a strategy to uphold the South Asian nation's financial responsibilities, despite dwindling foreign currency reserves.

This resolve has opened a fresh chapter in Sri Lanka's debt-diplomacy, paving the way for India to step in with offers of multibillion dollar financial relief. New Delhi's largesse counters geopolitical rival China's long-held position as Sri Lanka's lender of last resort.

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