Negotiations regarding the restructuring of Sri Lanka’s foreign debt remain ongoing, with no final agreement reached yet, according to Sagala Ratnayake, Presidential Senior Adviser on National Security and Chief of Presidential Staff.
An upcoming agreement with the International Monetary Fund (IMF) has seen progress, with discussions in London resulting in agreement on two out of four issues related to the restructuring of foreign debt obtained by Sri Lanka from both government and international bondholders.
Ratnayake stated, “Although it was possible to reach an agreement on two issues out of four during the discussions held in London last March, further negotiations will be necessary to reach an agreement on the remaining two issues.”
Highlighting the recent meetings in London, Ratnayake mentioned, “The bondholders met in London at the end of March,” explaining that prior to the meeting, international creditors had proposed restructuring options for their debt repayments, to which Sri Lanka responded with counter-proposals.
However, Ratnayake noted that there was a disparity between the proposals put forward by the creditors and the policies of the IMF. He stated, “The relevant parties accepted that the proposals given by these creditors were not consistent with the policies of the International Monetary Fund and the proposals given by the Government of Sri Lanka were in accordance with the IMF.”
Regarding the details of the negotiations, Ratnayake emphasized the confidentiality of the discussions, stating, “It is not possible to disclose the facts that have been reached and those that have not been reached.” However, he expressing optimism about the ongoing negotiations.
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