Debt restructuring talks underway with IMF, India, China: Sri Lanka President

Sri Lanka has began debt restructuring talks with the IMF, India and China, President Ranil Wickremesinghe stated on Sunday, exuding confidence that if the discussions transfer ahead in a “systematic way”, the nation would tide over its worst financial disaster.

Addressing a gathering within the Siyambalanduwa district, Wickremesinghe stated talks have additionally began with personal collectors on debt restructuring.

“For the first time yesterday, we began talks with the IMF, China, Japan and India on lessening our debt burden,” he stated.

“It will be difficult for us to pay back debt, still we have to find ways to lessen our debt burden. We are faced with a situation where we are unable to meet interest payments. But I’m hopeful that if our talks could be carried forward in a systematic way, we would be able to solve our problems,” he stated.

The president stated he spoke to the Chinese finance minister whereas Sri Lanka’s finance minister Shehan Semasinghe on Saturday began talks with India on debt restructuring in Washington.

He stated the funds from the World Bank, the Asian Development Bank, the US and the EU have been getting used to pay for the island’s medication and fertiliser imports.

Sri Lanka reached a staff-level settlement with the IMF in late August for a USD 2.9 billion rescue package deal over 4 years. Its completion hinges on assurances from Sri Lanka’s collectors on debt restructuring.

The authorities in May appointed worldwide authorized and debt advisors for debt restructuring after the nation for the primary time in historical past declared its worldwide debt default.

Sri Lanka is almost bankrupt and has suspended repaying its USD 51 billion overseas debt, of which it should repay USD 28 billion by 2027.