South East Asian Headlines & Breaking News

Sri Lanka expects major debt restructuring deals as IMF to review bailout – report

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Sri Lanka expects to forge major deals in its debt restructuring this month as the International Monetary Fund (IMF) conducts the first review of its USD 3 billion loan program.

Legislators this week are likely to pass a bill amending tax laws, clearing a legal hurdle and allowing a domestic bond swap to be completed by mid-September, Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe said at an investor forum on Tuesday (05 Sep.).

Meanwhile, officials are also expected to reach an agreement on how to restructure its foreign debt this month, he said.

After months of delay, Sri Lanka is stepping up efforts to fast-track its debt restructuring to help secure more funds from the IMF and set its economy back on track after it defaulted in 2022.

Sri Lanka’s dollar bondholders and lenders like China and India are closely watching the local debt exchange as creditors seek equal treatment.

Source – Bloomberg

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