Sri Lanka Nears Completion of Debt Restructuring Process

COLOMBO (News 1st); Sri Lanka's Foreign Affairs Minister Ali Sabry, PC believes that the island nation will be able to complete the Debt Restructuring process by the end of July 2024.

Speaking at an event in Singapore, Ali Sabry said explained that the government, along with its financial and legal advisors and the bondholders' ad-hoc committee, which represents 52% of the bondholders, have agreed on the parameters for the restructuring. 

These parameters have been submitted to the International Monetary Fund (IMF) for review to ensure they comply with the IMF's Debt Sustainability Analysis (DSA).

He emphasized the importance of aligning with the DSA to achieve debt sustainability, expressing confidence that the agreed parameters meet the necessary criteria. 

The final approval from the IMF and the Office of the Comptroller of the Currency (OCC) is anticipated by the end of the month.

Once the approval is received, Sri Lanka will be able to officially conclude the debt restructuring process and begin the repayment phase, marking a significant milestone in the country's efforts to stabilize its financial situation, he said.