The Official Creditor Committee (OCC) has confirmed its agreement in principle on specific financing terms to restructure Sri Lanka’s debt in line with the debt restructuring parameters set in the International Monetary Fund’s (IMF) programme, State Minister of Finance Shehan Semasinghe said.
Taking to ‘X’, State Minister Semasinghe said Sri Lanka is very grateful to its bilateral creditors for their cooperation.
“This is a very significant milestone & a similar agreement in principle was provided earlier by the China Exim Bank. It confirms that all official creditors have agreed to restructure Sri Lanka’s debt, which is a major step in the resolution of Sri Lanka’s economic crisis,” he said.
The State Minister further revealed that the OCC’s agreement now paves the way for the IMF board to consider the first review of Sri Lanka’s EFF programme and unlock the next tranche of IMF funding expected in December, which in turn would enable the World Bank and Asian Development Bank (ADB) to provide further financing.
“This is another important indicator of the continued cooperation and support of the global community in Sri Lanka’s economic recovery. Sri Lanka remains committed to the implementation of a comprehensive reform programme that will restore macroeconomic stability and place the country on a path of sustainable and inclusive economic growth,” he said.
State Minister Semasinghe added that Sri Lanka through its financial advisors, will continue to engage with its external private sector creditors in order to reach a similar agreement in principle. (NewsWire)