Talks on renegotiation to resume once World Bank Spring meeting concludes
Expects agreement with bondholders before IMF third tranche
Government, along with financial advisers Lazard and legal adviser Clifford Chance, will resume talks with international sovereign bond (ISB) holders in London once the ongoing World Bank Spring meeting in Washington DC concludes and the team returns, Senior Adviser to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka said yesterday.
He said that the initial discussion in this regard was held in March this year in London and they have agreed on several key points. At this meeting all parties concerned came to a ‘non disclosure’ agreement on the discussions until yesterday.
“Out of the four key points there are two points that needs to be renegotiated and we hope to get them sorted out after another meeting which will be held soon,” he noted.
He said that the first meeting was successful and it was also supported by the Intentional Monetary Fund. “We are confident that we will be able to talk to ISB holders and come to a final settlement before the IMF holds their next meeting in June where Sri Lanka’s third tranche will be released.”
Rothschild (financial advisor to the creditor group) and Lazard, the two debt specialists based in Paris, France, are working with the goal of optimizing the restructuring of Sri Lanka’s ISBs for their respective clients.
Ratnayaka showed optimism on the future talks and said a positive outcome awaits subsequent to these discussions.
Asked about the negotiations with China, he said that too was successfully negotiated by Prime Minister Dinesh Gunawardena during his recent visit to China and meeting with key Chinese officials.
Additionally, financial advisers to Sri Lanka’s debt restructuring process Lazard and legal adviser Clifford Chance would be present as observers.
Shirajiv Sirimane