Colombo: Sri Lanka has initiated debt restructuring talks with International Monetary FundIndia and China, President Ranil Wickremesinghe said on Sunday, expressing confidence that if the discussions proceed “in an orderly manner”, the country will tackle its worst economic crisis.
Addressing a gathering in Siambalanduwa district, Wickremesinghe said talks have also started with private creditors on debt restructuring.
“Yesterday for the first time we started talks with the IMF, China, Japan and India to reduce our debt burden,” he said.
“It will be difficult for us to repay the debt, yet we have to find ways to reduce our debt burden. We are facing a situation where we are unable to meet the interest payments. But I hope that if we negotiate can be taken forward in a systematic manner, then we will be able to solve our problems.”
The president said he spoke to the Chinese finance minister, while Sri Lanka’s finance minister Shehan Semasinghe began talks with India on debt restructuring in Washington on Saturday.
He said that funds from the World Bank, Asian Development BankThe US and EU were being used to pay for the island’s pharmaceutical and fertilizer imports.
In late August, Sri Lanka signed an employee-level agreement with the IMF for a $2.9 billion rescue package over 4 years. Its completion hinges on assurances from Sri Lankan creditors on debt restructuring.
After declaring its international debt default for the first time in the country’s history, the government in May appointed international legal and debt advisors for debt restructuring.
Sri Lanka is almost bankrupt and has stopped paying its foreign debt of $51 billion, of which it will have to pay $28 billion by 2027.
Addressing a gathering in Siambalanduwa district, Wickremesinghe said talks have also started with private creditors on debt restructuring.
“Yesterday for the first time we started talks with the IMF, China, Japan and India to reduce our debt burden,” he said.
“It will be difficult for us to repay the debt, yet we have to find ways to reduce our debt burden. We are facing a situation where we are unable to meet the interest payments. But I hope that if we negotiate can be taken forward in a systematic manner, then we will be able to solve our problems.”
The president said he spoke to the Chinese finance minister, while Sri Lanka’s finance minister Shehan Semasinghe began talks with India on debt restructuring in Washington on Saturday.
He said that funds from the World Bank, Asian Development BankThe US and EU were being used to pay for the island’s pharmaceutical and fertilizer imports.
In late August, Sri Lanka signed an employee-level agreement with the IMF for a $2.9 billion rescue package over 4 years. Its completion hinges on assurances from Sri Lankan creditors on debt restructuring.
After declaring its international debt default for the first time in the country’s history, the government in May appointed international legal and debt advisors for debt restructuring.
Sri Lanka is almost bankrupt and has stopped paying its foreign debt of $51 billion, of which it will have to pay $28 billion by 2027.