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Friday, July 19, 2024

President Announces foreign Debt Restructuting

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President Ranil Wickremesinghe in a special address to the nation today (26) celebrated the culmination of extensive government efforts, highlighting significant achievements in debt restructuring.

This morning, Sri Lanka finalized a landmark restructuring agreement worth USD 5.8 billion with its bilateral lenders’ Official Creditor Committee in Paris, France. Concurrently, agreements were also signed in Beijing with the Export-Import Bank of China (EXIM) to restructure USD 4.2 billion in debt.

“These agreements signify ‘good news’ for those who truly love the country; Sri Lanka has emerged victorious,” declared President Wickremesinghe in his televised speech. He emphasized that these agreements would bolster international trust in Sri Lanka.

“These agreements serve as international assurances, certifying the renewed confidence of global communities,” Wickremesinghe added.

President Wickremesinghe announced that Prime Minister Dinesh Gunawardena would present both agreements to Parliament during a special session on July 2, urging all patriotic members to support their passage.

Reflecting on economic challenges, Wickremesinghe underscored the futility of strikes and threats, advocating instead for unity in strengthening the economy.

Detailing the specifics, President Wickremesinghe revealed that the debt restructuring agreements would defer bilateral loan payments until 2028, with repayment terms extended until 2043 on concessional terms. He highlighted that in 2022, Sri Lanka allocated 9.2% of its GDP to foreign debt payments, a figure expected to decrease to below 4.5% between 2027 and 2032, signaling significant fiscal progress.

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