Finance Minister of Japan Shunichi Suzuki has urged all creditor nations including China and India to discuss Sri Lanka’s debt restructuring.
The announcement comes after Sri Lanka reached a staff-level agreement with the International Monetary Fund yesterday.
Speaking during a news conference today, Minister Shunichi Suzuki said “It’s important for all creditor nations, including China and India, to gather to discuss Sri Lanka’s debt restructuring.”
The International Monetary Fund and Sri Lanka yesterday 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 US$2.9 billion.
The agreement was reached following talks between Sri Lankan authorities and an IMF team headed by Peter Breuer and Masahiro Nozaki.
An International Monetary Fund (IMF) mission led by Peter Breuer and Masahiro Nozaki visited Colombo from August 24 to September 1, 2022 to continue discussions on IMF support for Sri Lanka and the authorities’ comprehensive economic reform program.
The IMF said, “The new EFF arrangement will support Sri Lanka’s program to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka’s growth potential. The agreement is subject to the approval by IMF management and the Executive Board in the period ahead, contingent on the implementation by the authorities of prior actions, and on receiving financing assurances from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors. Debt relief from Sri Lanka’s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps.”
President Ranil Wickremesinghe yesterday thanked the visiting delegation of the International Monetary Fund and all officials who were involved in discussions to reach a staff level agreement.
The President said the government looks forward to continuing discussions on IMF support for Sri Lanka including a comprehensive economic reform programme.
President Wickremesinghe said the road ahead will be difficult and vowed to make progress.
Last month Japan announced that it will coordinate with Sri Lanka’s creditors in a bid to address the debt crisis.
Japanese Finance Minister Shunichi Suzuki said that it is important for all creditor nations of Sri Lanka to gather to discuss Colombo’s debt issue, adding that Tokyo would coordinate with other creditors on the matter.
President Ranil Wickremesinghe in July said the government will request Japan to invite the main creditor nations to talks on restructuring bilateral debts.