After securing agreements in-principle from China and Official Creditor Committee (OCC) on debt treatment, Sri Lanka’s focus is now on securing a deal with its private creditors, President Ranil Wickremesinghe said.
“Our next step involves heading to London to engage in negotiations with private creditors,” Wickremesinghe said.
He made these remarks while participating in the inauguration of the Karaliya Convention Centre and Performing Arts at Kandy Municipality yesterday.
According to the most recent data released by the Finance Ministry, Sri Lanka’s total external debt amounted to US$ 36.6 billion as at June 30, 2023. Out of this, bilateral credit accounted for US$ 10.94 billion.
However, Sri Lanka owes more to private creditors or to bondholders. As per the Finance Ministry data, Sri Lanka owed US$ 14.73 billion to commercial creditors as at June 30, 2023.
According to International Monetary Fund (IMF) estimates, Sri Lanka needs an overall debt reduction of US$ 17 billion to restore its debt sustainability.
Meanwhile, Wickremesinghe said Sri Lanka’s successful emergence from bankruptcy has paved the way for the country to regain access to credit, which will facilitate the commencement of development initiatives in the near future.
“The upcoming year will witness a surge in development projects, marking a significant milestone achieved through agreements pertaining to loans from the IMF and other nations,” he said.
