Sri Lanka to consult with IMF on latest bondholders' proposal
Sri Lanka will consult with the International Monetary Fund (IMF) to assess if the latest proposals discussed with bondholders were within the parameters of its bailout programme, the country’s finance ministry said on Wednesday (Apr 17).
The South Asian island nation on Tuesday rejected international bondholders’ proposal to restructure more than US$12 billion in debt, putting at risk critical IMF support and delaying its efforts to resolve a debt crisis.
“Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF (extended fund facility) programme,” state finance minister Shehan Semasinghe said in a statement.
The island nation defaulted on its foreign debt in May 2022 and kicked off negotiations with bilateral creditors several months later, eventually securing an agreement in principle with China, India and the Paris Club last November.
Discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties, Semasinghe said.
“During the talks both sides successfully bridged a number of technical issues enabling important progress to be made,” he added. REUTERS
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Biden now calls ally Japan ‘xenophobic’ along with China, Russia
Japanese companies struggle with yen’s continued weakness
Australia’s March goods trade surplus narrows to more than 3-year low
Hong Kong holds rate as Fed signals inflation concerns
Australian business strength is shocking even its biggest lender
South Korea’s factory activity shrinks in April, but optimism about outlook ticks up