COLOMBO (NewsRadio); State Minister of Finance Shehan Semasinghe Sri Lanka has postponed a round of debt restructuring talks initially expected to be held on Thursday to allow the Central Bank and Treasury officials to provide clarifications sought by the country’s creditors.
Sri Lanka formally kicked off the talks in September after securing a preliminary USD 2.9 billion bailout with the International Monetary Fund, a step on a path out of the country’s worst financial crisis in a decade.
But the government needs to secure financing assurances from key creditors including China, Japan and India before the funds can be disbursed.
State Minister Shehan Semasinghe said “There are different concerns that different creditors want cleared so it was decided that these clarifications would be communicated first and then new dates would be set for another round of talks.”
He confirmed that new dates are yet to be decided. State Minister Semasinghe has not provide details on the creditors’ concerns or what exactly was being discussed between them and Central Bank and Treasury officials.
Meanwhile, earlier this week, speaking to NewsRadio, State Minister Shehan Semasinghe said the government is still seeking to secure the IMF approval for a four-year programme in December.
Sri Lankan officials have also had talks with representatives from China EXIM Bank and China Development Bank which together hold about $4.3 billion in loans given to fund large infrastructure projects over the last 20 years.