Governor of the Central Bank of Sri Lanka Dr. Nandalal Weerasinghe says the country is making good progress in talks with creditors to obtain financial assurances for debt restructuring, an important step toward finalising an International Monetary Fund rescue plan.
Sri Lanka has reached a preliminary agreement with the IMF for a $2.9 billion rescue package over four years.
Its completion hinges on assurances on debt restructuring from creditors that include China, India and the Paris Club, a grouping of major creditor nations.
India announced last week that it has given its assurance to the IMF to facilitate the bailout plan. India has extended $4.4 billion in official credit to Sri Lanka, excluding other forms of lending.
Dr. Weerasinghe speaking at a media briefing today (25) said “Other bilateral creditors, Paris Club, China and small bilateral creditors are in the process of issuing financial assurances”.
He said the “process is making very good progress,” saying the country hopes to receive “the necessary financial assurances from all our creditors in a very short period.”