Colombo, April 16 (The Reporter) – Sri Lanka’s efforts to restructure its debt with private bondholders have encountered hurdles, while progress continues with bilateral creditors, a government official said yesterday.
The Chief of Staff to the President, Sagala Ratnayake, briefed journalists that discussions with private creditors, advised by their consultants, have involved proposals and counterproposals during two meetings this year.
The International Monetary Fund (IMF) reportedly considers the government’s proposals compliant with its program, while the bondholders’ proposals are not.
Initial disagreements on four points were narrowed down to two through further negotiations. Details on the specific disagreements were not disclosed due to confidentiality agreements.
Ratnayake emphasized that discussions with private bondholders are just one aspect of the broader debt restructuring plan. He highlighted successful negotiations with the Official Creditor Committee (OCC) representing bilateral creditors, including China. Sri Lanka is deciding whether to pursue a single agreement with the OCC or individual agreements with each member country.
“We have no issues with bilateral creditors; we only need to sign agreements with OCC members,” Ratnayake stated.
Regarding international support, Ratnayake reported positive feedback from the IMF and other donors on Sri Lanka’s recent economic progress. He added that the IMF remains committed to its program for the country .
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