Governor: Debt negotiations are going well

Central Bank Gov. Dr. Nandalal Weerasinghe this week expressed optimism that Sri Lanka is on track to finalize the Memorandum of Understanding (MoU) signing with official creditors before June, aligning with the timeline set for the second review by the International Monetary Fund (IMF).

“The debt negotiations are going well. Official creditors have agreed in principle, and we are now drafting the MoUs and loan agreements on a bilateral basis,” Weerasinghe said.

Sri Lanka will need to reach agreements with its official creditors – China, Japan, and India- and a resolution with external private creditors to restructure its foreign debt before finalizing the review.

He conveyed confidence in securing approval for external debt restructuring before June.

Dr. Weerasinghe noted ongoing progress with new proposals and discussions through advisors in consultation with the IMF regarding the commercial creditors.

An IMF delegation is scheduled to visit Sri Lanka in March, and the second review could be finalized about two months afterward.