COLOMBO: Cash-strapped Sri Lanka has approved a debt restructuring deal with its creditors while talks with international sovereign bondholders will continue further, Cabinet spokesman and minister Bandula Gunawardena said on Tuesday.
Gunawardena also said that top treasury officials along with the Minister of State for Finance have been sent to Paris to sign relevant agreements with the Official Lender Committee, which consists of two types of lenders called Paris lenders and non-Paris lenders .
The Paris Lenders Group is a group of 15 countries while the Non-Paris Lenders Group includes seven countries including India.
"Sri Lanka on Tuesday approved the debt restructuring agreement with the Committee of Creditors, while further negotiations will be continued with international sovereign bondholders," said Gunawardena, Minister of Transport, Highways and Mass Media.
"Sri Lanka faced its worst crisis since independence when we were not able to pay our debts. The President held long and extensive discussions with the Indian Prime Minister and Finance Minister, the leaders of China and Japan and the Paris Club debtors. Had talks,” Gunawardena added.
Officials said the agreements would include restructuring of more than US$10 billion of debt with bilateral creditors, including China.
Gunawardena also said that details of the approved debt restructuring deal would also be presented to Parliament by President Ranil Wickremesinghe and a national address would also be made on June 26 after the deal is signed.
The deal would be a major step in the island's economic recovery process after Sri Lanka announced its first sovereign default in 2022.
The deal was a condition for a US$2.9 billion International Monetary Fund bailout as the global lender stressed the island's debt sustainability.
Gunawardena also said that top treasury officials along with the Minister of State for Finance have been sent to Paris to sign relevant agreements with the Official Lender Committee, which consists of two types of lenders called Paris lenders and non-Paris lenders .
The Paris Lenders Group is a group of 15 countries while the Non-Paris Lenders Group includes seven countries including India.
"Sri Lanka on Tuesday approved the debt restructuring agreement with the Committee of Creditors, while further negotiations will be continued with international sovereign bondholders," said Gunawardena, Minister of Transport, Highways and Mass Media.
"Sri Lanka faced its worst crisis since independence when we were not able to pay our debts. The President held long and extensive discussions with the Indian Prime Minister and Finance Minister, the leaders of China and Japan and the Paris Club debtors. Had talks,” Gunawardena added.
Officials said the agreements would include restructuring of more than US$10 billion of debt with bilateral creditors, including China.
Gunawardena also said that details of the approved debt restructuring deal would also be presented to Parliament by President Ranil Wickremesinghe and a national address would also be made on June 26 after the deal is signed.
The deal would be a major step in the island's economic recovery process after Sri Lanka announced its first sovereign default in 2022.
The deal was a condition for a US$2.9 billion International Monetary Fund bailout as the global lender stressed the island's debt sustainability.
