Govt getting creditors to restructure debt – Ali Sabry

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The Government said yesterday (5) that they have already embarked on the process to get the creditors to restructure their debt repayment with Sri Lanka, following the IMF staff level agreement being successful.

According to Foreign Minister Ali Sabry, the staff level agreement with the International Monetary Fund (IMF) is still subject to the conditions that Sri Lanka gets all its foreign creditors to restructure the debt repayment.

“Sri Lanka is undergoing the most difficult economic challenges since independence and is in the process of an economic recovery and had a successful negotiation with the IMF,” he said.

“We are embarking on that process and the media highlighted that Japan, China and India have been very positive and assured that they will cooperate with us to complete the process,” he said

He said India has always supportive and the Indian Finance Minister assured of her support. “Therefore, there is sort of understanding and the willingness to cooperate with all major creditors and we can expedite the process.”

China has announced that  Sri Lanka should obtain the IMF support but has not specifically said they would agree to debt restructuring. Minister Sabry also spoke on the reforms and added that President Wickremesinghe during his August budget speech, made the point that the challenges are enormous in terms of actual reforms in the country. “We are in the process of undertaking that and the budget is the foundation to some very important strategies. Necessary reforms have to be undertaken in terms of cost-based pricing,” he added.