COLOMBO (Reuters) – Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe says the country is hoping to complete the debt restructuring negotiations in the next six months.
The Reuters News Agency quoted the Central Bank Governor as saying that Sri Lanka is committed to meeting all its debt repayments.
Governor Weerasinghe has said good progress has been made in negotiations with the Paris Club creditor nations and other creditors, and while talks with local banks to reduce rates are ongoing, restructuring of domestic debt remains an uncertainty.
The statement comes as India and China have announced their support to Sri Lanka’s debt restructuring process in the past few days.
Meanwhile, the International Monetary Fund today confirmed that India has committed to help ease the debt burden of Sri Lanka as part of a possible IMF-supported program.
An IMF spokesperson has said in a statement that as soon as adequate assurances are obtained and remaining requirements are met, including by the Sri Lankan authorities, an IMF-supported program for Sri Lanka can be presented to the Executive Board for approval.
The official said the IMF Board approval would unlock much needed financing for Sri Lanka.