Finance State Minister Shehan Semasinghe told Parliament yesterday that all official creditor countries have agreed to restructure Sri Lanka’s debt, which will pave the way to unlock the next tranche of the IMF loan which is expected this month.
The State Minister said this while making a special statement in Parliament yesterday regarding the confirmation of the Official Creditor Committee (OCC) on its in-principle agreement on specific financing terms to restructure Sri Lanka’s debt in line with the parameters set in the IMF programme.
He also said that through this debt restructuring, it will be possible to create economic stability in this country and reach economic growth by next year and Sri Lanka will be able to shed its bankruptcy status shortly. The State Minister further said that the necessary financial support will be received to restart all the projects that are being implemented with foreign financial support.
“Some raised a lot of doubt regarding receiving this second IMF installment. There were doubts among the people that the creditor countries will not support the process of debt restructuring. If the debt restructuring was not done at this time, we would not be able to move towards the expected economic growth. Therefore, this is a turning point in history. He mentioned that the OCC’s agreement now paves the way for the IMF’s Executive Board to consider the first review of Sri Lanka’s Extended Fund Facility (EFF) programme and unlock the next tranche of the loan which is expected in December and in turn would enable the World Bank and Asian Development Bank (ADB) to provide further financing.
Semasinghe also noted that this is another important indicator of the continued cooperation and support of the global community in Sri Lanka’s economic recovery.
“Sri Lanka remains committed to implementation of the comprehensive reform programme that will restore macroeconomic stability and firms place the country on a path of sustainable and inclusive economic growth. Subsequently, Sri Lanka through its financial advisors, will continue to engage with its external private sector creditors in order to reach similar agreement in principle,” he said.
Irangika Range