Debt Restructuring Talks Initiated With IMF, India, China: President Wickremesinghe

It will be tough for them to pay back debt, still they have to find ways to reduce their debt burden. The president is hopeful if the talks are carried forward in a systematic way, it would solve their problems. During August end Sri Lanka reached a staff-level agreement with the IMF for a 2.9 billion dollars rescue package for 4 years

The president of Sri Lanka, Ranil Wickremesinghe said that Sri Lanka has initiated debt restructuring talks with the International Monetary Fund(IMF), India and China, on 16 October. He believes that if the discussions move forward in a “systematic way”, the country would overcome the worst economic crisis ever in its history.

Wickremesinghe said that talks have already been initiated with private creditors on debt restructuring while addressing a gathering in the Siyambalanduwa district.

He said that it will be tough for them to pay back debt, still they have to find ways to reduce their debt burden. They have been through a situation where they were unable to meet interest payments.

The president is hopeful if the talks are carried forward in a systematic way, it would solve their problems. 

Wickremesinghe said that he spoke to the Chinese finance minister. And meanwhile Sri Lanka’s finance minister Shehan Semasinghe initiated talks with India on debt restructuring in Washington, on 15 October.

He said that the funds received from the World Bank, the Asian Development Bank, the US and the EU were being utilised towards island’s medicine and fertiliser imports. 

During August end Sri Lanka reached a staff-level agreement with the IMF for a 2.9 billion dollars rescue package for 4 years. Its completion ensures Sri Lanka’s creditors assurances on debt restructuring. 

In May, the appointment of international legal and debt advisors for debt restructuring was made by the government. It was made right after Sri Lanka declared its international debt default, for the first time in history. Sri Lanka is almost bankrupt and stopped repaying its 51 billion dollar foreign debt of which it must repay 28 billion dollar by 2027.