Sri Lanka's President to meet Paris Club next week

Sri Lankan President Ranil Wickremesinghe is scheduled to travel to the UK and France next week to meet with the Paris Club. Bandula Gunawardena, the spokesperson for the Sri Lankan Cabinet, confirmed this information.

 

 

In April 2022, the Central Bank Governor and the Finance Secretary announced that Sri Lanka would temporarily suspend foreign debt payments to avoid a severe default. It has been over a year since Sri Lanka made this decision.

 

 

Sri Lanka's external debt is approximately $42 billion, owed to various creditors, including foreign governments, multilateral institutions, and private investors. Due to the government's inability to meet its debt payments, Sri Lanka's credit rating has been downgraded.

 

 

To make the external debt more sustainable, the government plans to restructure it. This involves negotiating a new repayment schedule with creditors that is more affordable for Sri Lanka. The government has expressed its commitment to this restructuring process. However, its success will depend on creditor cooperation and the government's ability to implement necessary economic reforms.

 

 

On April 13, Japan, India, and France announced the launch of a debt restructuring negotiation process for Sri Lanka among official bilateral creditors. The goal is to coordinate the restructuring Sri Lanka's debt and demonstrate a solid commitment to leading the negotiation process. All official bilateral creditors will be invited to participate, emphasizing the importance of transparent gathering and discussing debt restructuring.

 

 

Japan expressed its dedication to working closely with creditor countries for a prompt conclusion of the debt restructuring process. Launching this process is a significant milestone that could help resolve debt issues faced by middle-income economies like Sri Lanka. As a long-standing partner, Japan reiterated its support for the people of Sri Lanka in overcoming difficulties and achieving robust development.