Compensation: Sri Lanka defaulted on its $46 billion international debt in April 2022 after the nation ran out of international foreign money | Photograph credit score: AFP
Sri Lanka’s new authorities mentioned on Tuesday (Oct 1, 2024) it could “evaluate” a $12.5 billion sovereign bond debt restructuring deal introduced final month as a part of efforts to restore ruined funds. of the nation.
Debt restructuring is a cornerstone of the Worldwide Financial Fund’s bailout plan that Sri Lanka agreed to final yr after an unprecedented financial disaster.
Former president Ranil Wickremesinghe had unveiled a cope with worldwide bondholders, the most important part of the federal government’s exterior debt, simply days earlier than dropping workplace in final month’s elections. However new Overseas Minister Vijitha Herath mentioned the brand new administration was nonetheless weighing whether or not to proceed with it.
“We are going to evaluate the debt restructuring settlement introduced by the earlier authorities,” Herath mentioned.
Herath mentioned an IMF workforce would go to Colombo on Wednesday (Oct 2, 2024) to satisfy members of recent leftist President Anura Kumara Dissanayake’s workforce.
The IMF delegation assembly was a “courtesy name” and substantive negotiations will start later this month in the USA, he added.
Sri Lanka defaulted on its $46 billion international debt in April 2022 after the nation ran out of international foreign money, resulting in months of extreme shortages of meals, gas and medication.
Dissanayake, an avowed Marxist, had criticized Wickremesinghe in the course of the marketing campaign for failing to safe higher offers with worldwide collectors and promised to renegotiate if elected.
In final month’s tentative deal, bondholders agreed to a 27% minimize of their loans.
Printed – Oct 02, 2024 11:41 am IST