India formally notified that it would support Sri Lanka’s debt restructuring plan, clearing a major hurdle for the bankrupt nation to unlock a $2.9 billion bailout from the International Monetary Fund, Bloomberg reported citing a person with knowledge of the matter.
India, one of Sri Lanka’s major bilateral creditors, gave its assurances late Monday, the person said, asking not to be identified as the details aren’t public.
An announcement could be made as early as Tuesday, another person said. “With very positive developments taking place over the past 12 hours, Sri Lanka is confident of reaching IMF board approval in the first quarter of 2023,” Sri Lanka’s junior Finance Minister Shehan Semasinghe said by phone Tuesday, when asked if India had assured support.
Source: Bloomberg
