G7 backs debt relief efforts for Sri Lanka

People wait in a queue to buy kerosene at a fuel station, amid the country's economic crisis in Colombo, Sri Lanka - Reuters

GERMANY (Reuters): The Group of Seven economic powers support debt relief efforts for Sri Lanka, G7 finance chiefs said on Thursday in a draft communique from a meeting in Germany after the country defaulted on its sovereign debt.

“The G7 stands ready to support the Paris Club’s efforts, in line with its principles, to address the need for a debt treatment for Sri Lanka,” the draft statement to be finalised before the end the meeting on Friday said.

G7 finance chiefs also singled out China, which has become a major creditor to low-income countries, to actively contribute to debt relief for such countries.