Sri Lanka: IMF Optimistic Despite Private Creditor Setbacks

COLOMBO (News 1st); Despite setbacks in private creditor debt restructuring, IMF says it is hopeful that a conclusion can be reached, soon.

Krishna Srinivasan, Director of the International Monetary Fund's Asia and Pacific Department, highlighted positive advancements in discussions with official creditors, expressing encouragement over the developments in this realm.

Regarding negotiations with private creditors, Srinivasan noted ongoing discussions while emphasizing the IMF's non-involvement in these talks.

He reiterated the IMF's role as an observer, providing input to negotiating parties on macro frameworks and anticipated outcomes.

Despite acknowledging setbacks in private sector restructuring, Srinivasan remained optimistic about the ongoing dialogue and expressed hope for eventual resolutions.

Srinivasan also commended the program's effectiveness in meeting expectations, citing improvements in economic indicators such as growth acceleration, inflation reduction, and rising reserves.

However, he cautioned about the challenges ahead, emphasizing the necessity of continued reforms, particularly in fiscal policies and structural reforms.

Notably, Srinivasan underscored the significance of governance enhancement and corruption mitigation as pivotal areas for reform.