India, Japan, and France Co-Chair Sri Lanka Debt Restructuring Negotiations: Nirmala Sitharaman
A file photo of Union Finance Minister Nirmala Sitharaman. (Photo | Shekhar Yadav, EPS)
Finance Minister Nirmala Sitharaman attended a high-level meeting on Sri Lankan debt issues on the sidelines of the International Monetary Fund (IMF)- World Bank (WB) Spring Meetings in Washington on Thursday. She expressed India’s commitment to supporting Colombo in dealing with its current economic crisis, emphasizing the importance of collaboration among creditors to ensure transparency and equality in the treatment of all creditors in the debt restructuring discussions.
The event aimed to demonstrate multilateral cooperation regarding the debt restructuring process among creditors, including Sri Lanka. Sri Lanka President Ranil Wickremesinghe participated virtually in the meeting. Japan Finance Minister Suzuki Shunichi, Sri Lanka State Finance Minister Shehan Semasinghe, and Emmanuel Moulin, Director-General of the Treasury, France, were also present.
Sri Lanka suffered an unprecedented financial crisis in 2022, the worst since its independence from Britain in 1948, due to a severe paucity of foreign exchange reserves, leading to political turmoil that ousted the all-powerful Rajapaksa family. Last year, the IMF approved Sri Lanka a UD 2.9-billion bailout package over four years pending the restructuring of its debt with creditors, both bilateral and sovereign bondholders. The USD 2.9 billion facilities could receive IMF board approval in March with assurances from creditors.
The ministers announced the launch of the debt restructuring negotiation process in Sri Lanka under the three Co-Chairs: India, Japan, and France, to lead the coordinated debt restructuring of Sri Lanka. The event aimed to ensure that the debt restructuring process addresses the crisis with transparency, fairness, and the best interest of all parties.
Re-reported from the story originally published in https://www.newindianexpress.com/
