Colombo July 4 2023: Sri Lanka’s foreign creditors are agreeable to restructuring the nation’s debt as per International Monetary Fund criteria to reach sustainability, Foreign Minister Ali Sabry said.
Confident of China’s help in the debt restructuring, Sabry told reporters in Colombo. Sri Lanka’s treasury secretary K M Mahinda Siriwardana will visit Beijing for negotiations.
Sri Lanka holding bilateral talks on debt restructuring with China, which is an observer at a creditor platform organized by India, Japan and Paris Club.
Debt restructuring needed to spur investments, Sabry said. Banks spared from local debt overhaul strategy to protect the economy. Market interest rates edging down with economic stabilization.
Nation’s FX reserves up at $3.6 billion and Local rupee may face downward pressure once debt payments restart while being supported by increase in tourism receipts and investments, Sabry.