It is reported that Sri Lanka will make a special presentation to its international creditors next Friday.
It is a detailed presentation of the full situation of the country’s economic crisis, debt restructuring and the plan for the multi-billion dollar International Monetary Fund bailout.
According to Nikkei Asia News Agency, the Ministry of Finance of Sri Lanka issued a statement through Clifford Chance, a legal firm hired to deal with the restructuring of Sri Lanka’s debt.
The online meeting is to be held as an ‘interactive session’ where all external creditors can ask questions.
“The authorities intend to update their external creditors on the most recent macroeconomic developments, the main objectives of the reform package agreed with the IMF and the next steps in the debt restructuring process,” This is mentioned in the meeting held on September 17th.
The country’s borrowings are so complex that the total value ranges from $85 billion to $100 billion, the news reported.
Perhaps it’s said that the most challenging of all will be finding common ground on how to reduce the debt owed to Sri Lanka by competing regional powers China, India and Japan.
President Ranil Wickremesinghe has managed to reach a preliminary agreement with the International Monetary Fund that if the current debt restructuring is formalized, the country will be given a loan of 2.9 billion dollars in four years.
