Sri Lanka should be able to conclude newly-launched debt restructuring talks by September, or November at the latest, President Ranil Wickremesinghe said today adding that the negotiations had made “remarkable” progress.
Sri Lanka secured a $2.9 billion bailout from the International Monetary Fund in March but must set up a debt restructuring framework by September to carry forward the program, or risk undermining a slow economic recovery.
It was not clear whether President Ranil Wickremesinghe’s comment signalled a possible delay in the process. He was speaking as he began a meeting with Japanese Prime Minister Fumio Kishida at the latter’s office in Tokyo.
The two leaders affirmed the importance of transparent and fair debt restructuring, according to a summary of their discussions issued by Japan.
“We have made remarkable headway as far as the debt restructuring talks are concerned,” Wickremesinghe said.
“(We) should be able to conclude by September, or November the latest,” which he said would mark an end to Sri Lanka’s economic crisis.
A Japanese finance ministry official said they did not believe the president was signalling a delay.
Kishida, speaking after his first meeting with the Sri Lankan leader since last September, told a forum: “Sri Lanka is a hub of the Indian Ocean. Japan has led the debate among its creditor countries, and we will continue to contribute and strive to help Sri Lanka get back on a track for growth.” (Reuters)