The Intergovernmental Group of Twenty Four (G24) has commended Sri Lanka for significant advancements made over the past two years while simultaneously stressing the urgent necessity for timely debt reduction measures for the country.
Dr. Iyabo Masha, Director of the G24, addressed reporters at the recent IMF and World Bank Group Annual Meetings in Washington, D.C., where she underscored the need for frameworks enabling middle-income nations to negotiate with their creditors, similar to the existing common framework designed for low-income countries.
Dr. Masha addressed G24's position on assisting countries like Sri Lanka that are currently navigating economic recovery. She noted that the latest IMF Article IV assessment indicates positive trends for Sri Lanka, including signs of recovery characterized by increased economic growth, strengthened fiscal buffers, and a rise in import duties.
Dr. Masha stressed that debt sustainability remains a critical concern for Sri Lanka. She called for the establishment of negotiation frameworks for middle-income countries, which would provide them with opportunities similar to those available to low-income countries. Furthermore, she mentioned the Sovereign Debt Resolution Roundtable as a potential forum for middle-income countries, highlighting that while it does not currently provide direct debt relief, it fosters mutual understanding and collaboration among parties.
In her remarks, Dr. Masha emphasized the importance of timely and comprehensive debt reduction measures, suggesting that without such actions, the sustainability of countries like Sri Lanka could be compromised. She expressed optimism about the prospects for these discussions, stating that if they advance swiftly, it could lead to significant benefits for Sri Lanka, Lebanon, and other nations facing similar economic challenges.
