Govt to virtually brief creditors on IMF deal

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The Sri Lankan Government will virtually brief all its external creditors on 23 September on the deal agreed with the International Monetary Fund (IMF) for the economic recovery and the next steps in the debt restructuring process.

On 1 September, the IMF reached a staff-level agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about USD 2.9 billion.

Sri Lanka is going through its worst economic crisis since its independence in 1948, which was triggered by a severe paucity of foreign exchange reserves.

“Sri Lanka will make an online presentation to external creditors on 23 September updating them on a deal agreed with the International Monetary Fund and recent economic developments,” Clifford Chance, the debt restructuring adviser, said in a statement on Saturday.

The Sri Lankan Finance Ministry will update creditors on recent macro-economic developments, the objectives of the IMF package, and the next steps in the debt restructuring process.

The IMF, while announcing its willingness to enter a staff-level agreement at the end of August, said agreement with creditors was the key to the facility.

Meanwhile, inside sources who cannot be quoted said there are plans to talk with Sri Lanka’s creditors on Friday (23 September), but refused to divulge further details, as they were expected to maintain radio silence in respect of such talks.

(Business Standard/PA)