(Bloomberg) —

Sri Lanka’s foreign creditors are agreeable to restructuring the nation’s debt as per International Monetary Fund criteria to reach sustainability, Foreign Minister Ali Sabry said.

Confident of China’s help in the debt restructuring, Sabry told reporters in Colombo

Sri Lanka’s Treasury Secretary, K. M. Mahinda Siriwardana, will visit Beijing for negotiations.

NOTE: Sri Lanka is holding bilateral talks on debt restructuring with China, which is an observer at a creditor platform organised by India, Japan, and the Paris Club.

Debt restructuring is needed to spur investments, Sabry said. Banks are spared from the local debt overhaul strategy to protect the economy. Market interest rates are edging down with economic stabilisation. The nation’s FX reserves are up to $3.6 billion, Sabry said.

The local rupee may face downward pressure once debt payments restart while being supported by an increase in tourism receipts and investments. Sabry said