Home » Sri Lanka Completes Consultations with IMF and Official Creditor Committee on Sovereign Debt Restructuring

Sri Lanka Completes Consultations with IMF and Official Creditor Committee on Sovereign Debt Restructuring

written by CN Source

October 05, Colombo (LNW): The Ministry of Finance announced today (04) that Sri Lanka has successfully completed consultations with the Official Creditor Committee (OCC) and the International Monetary Fund (IMF) following the Agreement in Principle (AIP) reached on September 19, 2024, regarding the restructuring of its International Sovereign Bonds (ISBs).

The Sri Lankan authorities confirmed that the terms of the AIP comply with the Comparability of Treatment (CoT) principle, as validated by the OCC, and are aligned with the IMF’s parameters under the Extended Fund Facility (EFF) program. This confirmation marks a significant step in Sri Lanka’s debt restructuring process.

Additionally, the IMF has confirmed that the AIP terms fit within the second review macro framework of Sri Lanka’s IMF-supported program, particularly when considered alongside the restructuring of official claims, including those agreed upon with the OCC and China Eximbank in June 2024.

Following the presidential elections on September 21 and the appointment of the new government on September 25, Sri Lankan authorities reaffirmed their commitment to the debt targets and AIP terms. The Ministry of Finance emphasized that the new administration intends to expedite the restructuring process of the ISBs in accordance with the agreed terms.

Sri Lanka expressed gratitude to its creditors, the IMF, and the OCC for their continued support and engagement throughout this process.

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written by CN Source

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