Renegotiating debt terms can lead to economic instability- AliSabry

The conditions for the Debt Sustainability Agreement (DSA) have now become part of the law and cannot be easily altered, Sabry said. He emphasised that renegotiating the deal could lead to further economic instability in the island nation, which is recovering from the worst-ever economic turmoil it suffered in 2022.

Sri Lanka declared its first-ever sovereign default in mid-April 2022, having run out of its foreign exchange reserves. The halt to the debt services meant that the multilateral creditor nations and commercial lenders could not extend fresh financing to the country.