COLOMBO (Reuters) – Sri Lanka’s central bank governor Weerasingha said on Thursday the country will announce its debt restructuring strategy in April. Facilitate negotiations with commercial creditors prior to the completion of a review by the International Monetary Fund (IMF).
The country is expected to be approved by the IMF for a four-year bailout worth $2.9 billion on Thursday.
“The announcement of the staff-level agreement will clarify our commitment to debt restructuring and our medium-term debt targets to restore long-term debt sustainability,” he told Reuters.
“So we will announce in April how we will reach those medium to long term (debt) targets. That’s the next step.”
The governor has announced a policy to speed up negotiations with commercial creditors. Publish a debt restructuring strategy after consultation with commercial creditors and then finalize the terms of the debt restructuring.
“We aim to reach a final decision within the next six months, so before the next (IMF) review is completed,” he said.
The country has 10 years to restore debt sustainability under an agreement with the IMF. The IMF will provide a road map for reducing debt levels in 10 years, he said.
