Zulfick Farzan
COLOMBO ; The International Monetary Fund (IMF) expressed cautious optimism about Sri Lanka’s debt restructuring efforts, highlighting agreements reached with key creditors. However, the IMF urged Sri Lankan authorities to expedite the finalization of these agreements for a swifter path towards debt sustainability.
“Sri Lanka’s Agreements in principle with the Official Creditor Committee and Export-Import Bank of China on debt treatments consistent with program parameters were important milestones putting Sri Lanka’s debt on the path towards sustainability,” stated Peter Breuer, IMF Senior Mission Chief. “The critical next steps are to finalize the agreements with the official creditors and reach Agreements in Principle with the main external private creditors in line with program parameters in a timely manner. This should help restore Sri Lanka’s debt sustainability over the medium term.”
Breuer clarified that delays in finalizing agreements with official creditors haven’t been flagged as a concern. He acknowledged that converting agreements in principle into formal agreements can take time. However, he emphasized the importance of this process for solidifying debt relief efforts.News First
