President extends his gratitude and provides reassurances to bilateral creditors

President Ranil Wickremesinghe has extended his gratitude towards bilateral creditors in light of their support and cooperation in debt restructuring that has facilitated the possibility of obtaining the financing facility from IMF.

President expressly thanked the Paris Club creditors, Japan, India and China for enabling cooperation required to reach this level in the debt negotiations. He singled out and extended his appreciation to the Paris Club Secretariat for their efforts in calling out other creditors to also deliver IMF compatible financial assurances.

President goes on to highlight in the letter that in the 75 years of Sri Lanka’s independence this is the most critical economic period the country has ever faced; which is why the government has introduced a strong reform policies, targeting debt sustainability, strengthening governance, widening social safety for most vulnerable.

In terms of the debt restructuring, president makes the following commitments in the letter;

• To ensure transparency in debt treatment terms that are agreed with any creditor or group of creditors before proceeding with such agreement.

• To not resume debt service to any creditor unless that creditor agrees on a comprehensive debt treatment in line with IMD-supported program parameters ad comparability of treatment.

• To ensure comparable treatment for all external creditors, with the a view of ensuring equitable burden sharing for all restructured debts.

Purpose of this letter by the President, is to give assurances to all bilateral creditors as there is a likelihood of the IMF loan being finalised on the 20 of this month (March) at the IMF Board meeting, in order to ensure mutual cooperation in the future.


by Daily News Sri Lanka

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