27 C
Colombo
Monday, May 27, 2024

Sri Lanka’s talks with creditors ongoing, unaware of specific deals – IMF

- Advertisement -

Discussions between Sri Lanka and all its creditors are ongoing, though the International Monetary Fund has not been informed about any specific agreements, its mission chief for the country said on Wednesday.

“We will need to assess the entire package of agreements in its totality to assess consistency with IMF debt targets,” Peter Breuer told Reuters on the sidelines of the World Bank IMF annual meetings in Marrakech.

Sri Lanka, mired in its worst economic crisis in 70 years, is in debt restructuring talks with a range of creditors, including China, its largest single creditor. Colombo suspended debt repayments in May 2022.

China’s Foreign Ministry said on Tuesday that the Export-Import Bank of China reached a preliminary deal on the disposal of China-related debts, but did not share further details.

Sri Lanka owed EXIM $4.1 billion, or 11% of the country’s foreign currency debt, as of the end of 2022.

Sri Lanka is also in talks with IMF over a $2.9 billion bailout. But in September the fund declined to release a second tranche of around $330 million after it failed to reach a staff-level agreement over concerns of a possible government revenue shortfall.

Other bilateral creditors of Sri Lanka including the Paris Club, Japan and India are expected to make an announcement on a deal during the IMF meetings a source with direct knowledge of the talks told Reuters.

Japan, India and France announced in April a common platform for talks among bilateral creditors to coordinate restructuring of Sri Lanka’s debt, a move they hope would serve as a model for solving the debt woes of middle-income economies.

As a middle-income country, Sri Lanka is not part of the G20 debt initiative known as the Common Framework, so talks with official creditors from China are conducted separately.

RECENT ARTICLES

Chinese traveler from Colombo found infected with COVID-19 on arrival at Shanghai

0
A Chinese national who arrived from Sri Lanka has been infected with COVID-19, Shanghai (China) Health Commission said on Thursday morning.  According to Chinese media,...

Another 160 Omicron cases detected in Sri Lanka

0
Another 160 cases of Omicron COVID variant have been recorded in Sri Lanka, Dr. Chandima Jeewandara from University of Sri Jayewardenepura said. According to Dr....

PM visits Tirupati

0
Prime Minister Mahinda Rajapaksa has left for India on a 2-day pilgrimage to the temple city of Tirupati today (23). He was accorded a warm...

POPULAR ARTICLES

Breaking: French Ambassador to Sri Lanka and Maldives Passes Away

0
The Ambassador of France to Sri Lanka and Maldives, Jean-François Pactet, has reportedly passed away in his official residence in Rajagiriya today (26). Sources indicate...

Van Accident in Galgamuwa Leaves One Dead, 13 Injured

0
A tragic accident occurred in the early hours of Sunday (26) in the Mee Oya area of Galgamuwa, where a van transporting pilgrims veered...

Viranjith Thambugala Granted Bail

0
Aura Lanka Chairman Viranjith Thambugala, who was arrested by the Criminal Investigation Department (CID), was granted bail. On May 22, the CID arrested Thambugala over...