President holds talks with diplomats on debt restructuring

President Ranil Wickremesinghe held talks with diplomats today on debt restructuring and the International Monetary Fund (IMF) program.

The Ambassadors’ Forum on debt restructuring and International Monetary Fund (IMF) program saw the participation of a total of 16 Colombo-based missions, the President’s Media Division (PMD) said.

The PMD said that six diplomats based in New Delhi also attended the discussion virtually.

The IMF had recently reached a staff-level agreement to support Sri Lanka’s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about US$ 2.9 billion.

The objectives of Sri Lanka’s new EFF supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.

The IMF had said that debt relief from Sri Lanka’s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps. Financing assurances to restore debt sustainability from Sri Lanka’s official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support to Sri Lanka. (Colombo Gazette)