Debt Restructuring stalls with private bondholders, advances smoothly with bilateral creditors

Date:

April 16, Colombo (LNW): Sri Lanka’s debt restructuring process encounters hurdles in negotiations with private bondholders, while progressing smoothly with bilateral creditors, a senior official revealed yesterday (15).

Speaking to reporters, Chief of Staff of the President Sagala Ratnayake disclosed that discussions between the government and private bondholders have faced challenges due to differing proposals from both sides.

Despite two rounds of talks this year, disagreements persist on key aspects, narrowing down to two unresolved issues.

Ratnayake highlighted the International Monetary Fund’s (IMF) acknowledgment of the government’s proposals as compliant, contrasting with bondholders’ proposals deemed non-compliant.

However, he refrained from divulging specific details, citing confidentiality agreements.

Emphasising that negotiations with private bondholders form only one facet of the debt restructuring programme, Ratnayake underscored successful discussions with the Official Creditor Committee (OCC) and individual bilateral creditors like China.

The next step involves determining whether to pursue a single agreement with the OCC or negotiate individual agreements with member states.

Addressing sentiments expressed by the IMF, Ratnayake noted international donors’ satisfaction with Sri Lanka’s recent economic progress.

However, he clarified that the IMF remains committed to its programme guidelines despite positive evaluations.

Share post:

spot_imgspot_img

Popular

More like this
Related

Digitalisation: The Engine of a Re-Emerging Sri Lanka – Vision 2030 Edition

Digitalisation: The Engine of a Re-Emerging Sri Lanka – Vision 2030 Edition

The Steuart by Citrus Reopens – A Historic Gem in the Heart of Colombo

Colombo, Sri Lanka – 10 October 2025 Citrus Leisure PLC...

Where Extreme Poverty Rates Are Highest in the World

The Highest Rates of Extreme Poverty by Country Key Takeaways Africa...

LAUGFS Gas PLC halts operations of Slogal Energy DMCC after U.S. sanctions listing

 LAUGFS Gas PLC yesterday announced the suspension of operations...