Japanese Ambassador Stresses Vital Role of Debt Restructuring in Sri Lanka’s Economic Recovery
February 17, Colombo (LNW): Mizukoshi Hideaki, the Ambassador of Japan to Sri Lanka, has emphasized the critical importance of debt restructuring in steering Sri Lanka’s path toward economic recovery. The ambassador highlighted the multifaceted nature of Sri Lanka’s economic crisis, deemed the most severe since its independence, and underscored the complexity of the challenges faced by the country.
The economic downturn in Sri Lanka necessitated a comprehensive approach to address debt sustainability issues, especially with major creditors like China and India, which are not part of the Paris Club, making traditional avenues for debt restructuring insufficient. Recognizing the gravity of the situation, Japan, in collaboration with France and India, proactively initiated the official Creditors Committee.
Japan’s active involvement in facilitating negotiations resulted in an agreement in principle reached last November. Ambassador Hideaki reiterated Japan’s commitment to supporting Sri Lanka’s debt restructuring initiatives. He emphasized the potential ramifications of failure on Sri Lanka’s development trajectory and its pivotal role as a hub in the Indian Ocean region, highlighting the broader implications for the international community.
