SL hopes to finalise EFF soon

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Sri Lanka is expecting to finalise the International Monetary Fund (IMF) negotiations towards reaching a staff-level agreement on the Extended Fund Facility (EFF) in the coming weeks according to Central Bank Governor Nandalal Weerasinghe. According to him expeditious measures are being taken to advance the debt restructuring process with the assistance of financial and legal advisers.

He said that the Government was not considering to restructure domestic debt as it was not a requirement by the IMF.

Though Lazard Group is looking at the best solution for debt restructuring and the domestic debt to was been considered as a factor, there is no need to restructure domestic debt, he said.

He said that restricting domestic debt would hurt the local banking system and cripple the economy.

The debt restructuring process is to help Sri Lanka manage its external obligations, so that the economy can recover and grow faster as well as the foreign lenders can get their finances back swiftly, he said.

BY Mario Andree