By: Isuru Parakrama
September 24, Colombo (LNW): The International Monetary Fund (IMF) has expressed its support for Sri Lanka’s recent progress in debt restructuring, following the announcement of an agreement in principle between the country and a consortium of international bondholders.
The arrangement seeks to address the restructuring of $12.5 billion in bonds, marking a crucial step in Sri Lanka’s economic recovery efforts.
In a statement released yesterday (23), the IMF also conveyed its willingness to collaborate with newly elected President Anura Kumara Dissanayake and his administration, as they work towards stabilising the nation’s economy.
A spokesperson for the fund stated, “We look forward to working together with President Dissanayake and his team towards building on the hard-won gains that have helped put Sri Lanka on a path to economic recovery.”
The restructuring of the bonds is seen as a critical development in helping Sri Lanka address its mounting debt and regain financial stability.
It comes after months of negotiations between Sri Lanka and its creditors, amid a backdrop of severe economic challenges exacerbated by the global downturn and domestic financial mismanagement.
The IMF also confirmed that it would soon discuss the timing of its third review of Sri Lanka’s current economic programme, which forms part of the broader strategy to support the country’s recovery.
“The discussions will take place as soon as practicable,” the spokesperson added, hinting at continued engagement between the fund and the Sri Lankan government in the months ahead.
Whilst the road to recovery remains long, these recent developments have been seen as positive steps towards rebuilding the country’s economic foundation and fostering international cooperation during this critical period.
